Nabati Food (India) Private Limited Vs Assistant Commissioner of Central Tax & Central Excise (Madras High Court)
Nabati Food (India) Private Limited (“Petitioner”) filed a writ petition before the Madras High Court challenging the rejection of its rectification application concerning GST demands. The petitioner’s challenge arose from an order dated 27.02.2025 passed under Section 73 of the relevant GST enactment and the subsequent order dated 26.08.2025, which rejected the rectification application filed on 27.05.2025.
The petitioner argued that for the same assessment period covering 2017–2018 to 2021–2022, an earlier order dated 03.02.2025 had already been passed. The amounts in the earlier and impugned orders overlapped. Specifically, the 03.02.2025 order addressed excess Input Tax Credit (ITC) claimed in GSTR-3B compared to GSTR-2A, amounting to ₹1,08,39,873, while the impugned order of 27.02.2025 reflected a similar amount of ₹1,08,28,252, along with other unrelated issues. The petitioner contended that this duplication of demand had not been addressed, making the orders arbitrary and justifying rectification under Section 161.
The respondent, represented by the Assistant Commissioner of Central Tax & Central Excise, argued that the impugned order was detailed and did not require rectification. The respondent maintained that rejection of the rectification application was proper and that the petitioner could pursue remedies through the Appellate Authority, the Additional Joint Commissioner (No. 38, Nungambakkam, Chennai).
