Case Law Details
Railroad Logistics (India) Pvt. Ltd. Vs Union of India & Ors. (Bombay High Court)
Introduction: In a recent verdict, the Bombay High Court granted relief to Railroad Logistics (India) Pvt. Ltd. in a case against Union of India & Ors. The court allowed the amendment of GSTR-1 for the financial year 2018-19, enabling its client, Mahindra & Mahindra, to claim Input Tax Credit (ITC). This article delves into the details of the judgment and its implications.
Detailed Analysis: Railroad Logistics, a registered entity under the Central Goods and Service Tax Act 2017, sought the court’s intervention to rectify an inadvertent error in its GSTR-1 filing. The error involved submitting the GST number of Mahindra & Mahindra (Rajasthan) instead of the correct GST number of Mahindra & Mahindra (Orissa) for the financial year 2018-19.
Mahindra & Mahindra (Orissa) received notices regarding the mismatch in GSTR-2A and GSTR-3B for the said financial year. The petitioner, Railroad Logistics, promptly informed the GST authorities of the error and requested permission to amend its GSTR-1. Despite filing a reminder letter, no action was taken, leading the petitioner to approach the Bombay High Court seeking relief.
The petitioner argued that the absence of enabling matching provisions, as prescribed in Section 42 and 43 of the CGST Act, should not hinder the rectification of such inadvertent errors. It invoked Section 37(3) and 38(5) to contend that these provisions should not obstruct the correction of errors that do not cause any loss of revenue to the exchequer.
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