Chhattisgarh HC Dismisses GST Writ Petition Over GSTR-3B Error

Lucent Iron And Steel Traders A Proprietorship Firm Vs Union of India Through The Secretary (Chhattisgarh High Court)

Chhattisgarh High Court dismissed a writ petition filed by Lucent Iron and Steel Traders, challenging a GST demand arising from an erroneous GSTR-3B return filed due to a consultant’s mistake. The petitioner had mistakenly declared input tax credit (ITC) from another entity, leading to a GST liability of ₹5,00,24,576/- along with interest and penalties. Despite notifying GST authorities about the error in November 2018 and seeking rectification, the department proceeded with a show cause notice under Section 73 of the CGST Act, 2017. The petitioner argued that the alternative appellate remedy was ineffective due to the required pre-deposit of 10% of the disputed tax.

The court, however, ruled that the petitioner must follow the statutory appellate process under Section 107 of the CGST Act, rejecting the plea to bypass it via writ jurisdiction. Citing Supreme Court precedent, the court held that no fundamental rights were violated, and the petitioner had received due notice. Since the petitioner had not availed the statutory remedy, the court found no exceptional circumstances to intervene. The petition was dismissed, but the petitioner was granted the liberty to pursue an appeal through the appropriate legal channels.