Hindustan Construction Company Ltd Vs Union of India (Karnataka High Court)
Karnataka High Court held that bona fide error made while filing return in Form GSTR3B are allowed to be corrected. Further, it is held that such bona fide errors cannot be sole ground for initiating proceedings u/s. 73 of the GST Act.
Facts- The petitioner having filed returns for the period July, 2017 to March, 2018, subsequently realised that there was errors in the GSTR1 and what should have been declared as B2C instead of B2B and accordingly, made necessary corrections on 06.05.2019. It is the grievance of the petitioner that despite the petitioner being entitled to make such corrections and also having made such corrections, the respondent No. 3 has issued the impugned show cause notice u/s. 73(1) of the KGST Act on the ground that the petitioner was not entitled to make such corrections and consequently, purported to initiate appropriate proceedings against the petitioner, who is before this Court by way of the present petition.
Conclusion- Held that the sole ground on which the respondent No. 3 purports to initiate proceedings against the petitioner by issuance of the impugned show cause notice by alleging that the petitioner was not entitled to make such corrections, the impugned show cause notice and all further proceedings pursuant thereto deserve to be quashed. Thus, writ Petition is allowed. The impugned notice dated 04.11.2022 and all further proceedings pursuant thereto are hereby quashed.
