Manpar Icon Technologies Vs Assistant Commissioner (Delhi High Court)
Delhi High Court Declines GST Writ Against Section 74 Corrigendum, Says Dispute on Scope of Correction Must Be Raised in Statutory Appeal
The Delhi High Court dealt with a writ petition challenging a show cause notice dated 28.06.2025 issued under Section 74 of the CGST Act, a corrigendum dated 22.12.2025, and an order dated 29.12.2025 confirming a tax demand of ₹42,66,108. The proceedings arose from an alert regarding fraudulent input tax credit (ITC) availed through a non-existent firm, M/s Advanta Sales.
Initially, the show cause notice concerned the financial year 2018–2019, alleging wrongful ITC utilization. The petitioner responded that no transactions with the said firm occurred during that year and that dealings, if any, took place only in 2019–2020. Subsequently, the authorities issued a corrigendum expanding the assessment period to include both 2018–2019 and 2019–2020.
The petitioner challenged the corrigendum, arguing that it unlawfully expanded the scope of the original notice beyond permissible rectification under Section 161 of the CGST Act. It was contended that rectification powers are limited to apparent clerical or arithmetic errors and cannot be used to introduce a new financial year, which effectively amounts to initiating fresh proceedings. The petitioner also argued that the corrigendum was time-barred, as the limitation period for issuing a notice for 2019–2020 had expired on 30.09.2025. Additionally, it was argued that failure to amend the DRC-01 summary alongside the corrigendum vitiated the proceedings.
