JSW Techno Projects Management Limited And Anr Vs Union of India And Ors (Bombay High Court)
The petition concerned the rejection of the petitioners’ application under Section 161 of the CGST Act, in which they sought rectification of what they termed an “error apparent on the face of the record” in a show cause notice dated 30 June 2025. The petitioners argued that the notice failed to consider taxes already paid and that such an omission constituted a rectifiable error. They also contended that the authority should have granted them a hearing before rejecting the rectification request. Additionally, they challenged the show cause notice itself, claiming it violated Section 6(2)(b) of the CGST Act as interpreted by the Supreme Court in Armour Security.
The Court found no merit in the petitioners’ arguments. It held that Section 161 applies only to documents such as decisions, orders, or notices that have an immediate and binding effect. A show cause notice, which imposes no liability and merely initiates adjudication, does not qualify. Any alleged errors could be raised in the petitioners’ reply to the notice, supported by evidence, and the adjudicating authority is expected to consider such submissions. The Court observed that the rectification request appeared to be a tactic to delay the adjudication process.
