Case Law Details
Veeran Mehhta v. Deputy Commercial Tax Officer and Deputy State Tax Officer (Madras High Court)
GST Authority must consider rectification application of Assessee due to inadvertent error made in Form GSTR-1
Summary: In the case of Veeran Mehhta v. Deputy Commercial Tax Officer and Deputy State Tax Officer (Madras High Court, Writ Petition No. 15789 of 2024), the Madras High Court addressed an issue where the petitioner, Veeran Mehhta, inadvertently filed Form GSTR-1 for the incorrect assessment period, leading to a tax liability dispute. Mehhta had correctly filed Form GSTR-3B for January 2018-2019, reflecting the accurate taxable value of IGST. However, the belated Form GSTR-1 was mistakenly submitted for July 2019-2020 instead of January 2018-2019, resulting in an erroneous order dated January 22, 2024, from the tax authorities. The petitioner filed a rectification petition on June 1, 2024, but faced recovery threats based on the erroneous order. The Court, noting the consistency in IGST values across the two documents, directed that no recovery or coercive actions be taken until the rectification petition was resolved. The Court further instructed the tax authorities to address the rectification petition within three months, ensuring the petitioner’s concerns were properly considered before any further actions.
Introduction:
The Hon’ble Madras High Court in Veeran Mehhta v. Deputy Commercial Tax Officer and Deputy State Tax Officer [Writ Petition No. 15789 of 2024 dated June 25, 2024], directed the disposal of the Order dated January 22, 2024, which was based on a belatedly filed Form GSTR-1, for the wrong assessment period. The Court further held that no recovery or coercive measures could be initiated until the Assessee’s rectification petition was resolved.
Facts:
Veeran Mehhta (“the Petitioner”) had correctly filed Form GSTR-3B for January 2018-19 by declaring the correct outward taxable supplies and, in particular, the IGST value thereof as Rs.4,17,577/-. The Petitioner, while filing the belated Form GSTR-1 for January 2019, inadvertently submitted the return for July for the assessment year 2019-2020 assessment period, instead of the return for January of the 2018-2019 assessment period. The Deputy Commercial Tax Officer and Deputy State Tax Officer (“the Respondent”) passed an order dated January 22,2024 (“the Impugned Order”), based on Form GSTR-1. Thereafter, the Petitioner filed rectification petition on June 01, 2024. The Petitioner was then threatened with recovery action based on the Impugned Order.
Hence, aggrieved by the Impugned Order, the Petitioner filed the present writ petition.
Held:
The Hon’ble Madras High Court in W.P. No. 15789 of 2024 held as under:
- Noted that, the Petitioner placed on record the Form GSTR-3B for January in the assessment period 2018-2019. The Form GSTR-1, purportedly for July in the assessment period 2019-2020 was also on record. The outward taxable value pertaining to IGST in the two documents tallied. The Petitioner also placed on record the tax liability comparison report from the GST portal. This document also indicated an excess in liability when the Form GSTR-3B and Form GSTR-1 were compared. Such excess was Rs. 4,17,577/-. In these circumstances, a prima faciecase was made out for consideration of the rectification petition.
- Held that, the writ petition was disposed of without any order. Further, the Respondent was restrained from initiating recovery or coercive measures until the rectification petition was disposed of and lastly, directed the Respondent to consider and dispose of the rectification application within three months from the date of the order.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
An order dated 22.01.2024 is challenged in this writ petition.
2. The petitioner states that the GSTR 3B return for January 2018-2019 was filed by correctly reflecting the outward taxable supplies and, in particular, the IGST value thereof as Rs.4,17,577/-. The petitioner further states that inadvertently, while filing the GSTR 1 statement belatedly for January 2019, the return was filed by specifying that it is for July in the assessment period 2019-2020 instead of January for the assessment period 2018-2019. Since the impugned order was on the basis of the GSTR 1 statement, the petitioner filed a rectification petition dated 01.06.2024. The present writ petition was filed because the petitioner is threatening recovery action based on the impugned order dated 22.01.2024.
3. Learned counsel for the petitioner referred to the relevant GSTR 3B return and the GSTR 1 statement and pointed out that the tax proposal was confirmed entirely on account of not appreciating the inadvertent error committed by the petitioner. She further submits that the rectification petition has not been disposed of till date.
4. Mr. V. Prashanth Kiran, learned Government Advocate, accepts notice for the respondent. He submits that the rectification petition would be disposed of within a reasonable time.
5. The petitioner has placed on record the GSTR 3B return for January in the assessment period 2018-2019. The GSTR 1 statement purportedly for July in the assessment period 2019-2020 is also on record. The outward taxable value pertaining to IGST in these two documents tallies. The petitioner also placed on record the tax liability comparison report from the GST portal. This document also indicates an excess in liability when the GSTR 3B and GSTR 1 statement are compared. Such excess is Rs.4,17,577/-. In these circumstances, a prima facie case is made out for consideration of the rectification petition. Since such petition is pending, it is just and appropriate that the same be disposed of expeditiously.
6. For reasons set out above, W.P.No.15789 of 2024 is disposed of without any order as to costs by directing the respondent to consider and dispose of the rectification petition dated 01.06.2024 within three months from the date of receipt of a copy of this order. Until such petition is disposed of, the respondent is restrained from initiating recovery or coercive measures pursuant to the order in original. Consequently, connected miscellaneous petitions are closed.
*****
(Author can be reached at [email protected])
Author Bio
