Madras HC Orders Timely Disposal of GST Rectification Requests

Mani Blue Metals & M. Sand Vs State Tax Officer (Madras High Court)

Rectification application filed to be mandatorily disposed within six months of issuance of order or notice or any other document under Section 161

The Hon’ble Madras High Court in the case of Manu Blue Metals and M. Sand v. State Tax Officer [W.P. No. 16407 of 2024 dated July 05, 2024] disposed of the writ petition in case where the rectification application filed was not being decided upon within the prescribed period of six months for rectification of order as per Section 161 of the Central Goods and Services Tax Act (“the CGST Act”).

Facts:

Mani Blue Metals and M. Sand (“the Petitioner”) issued an assessment order dated August 30, 2023 was issued relating to alleged non-payment of tax due of seigniorage fees under RCM and alleged short payment of tax on outward supply.

The Petitioner thereafter filed a rectification application under Section 161 of the CGST Act. However, the Petitioner contends that the rectification application has not been disposed within the prescribed time limit of six months.

Issue:

Whether rectification application filed is to be mandatorily disposed within six months of issuance of order or notice or any other document?

Held:

The Hon’ble Madras High Court in the case of W.P. No. 16407 of 2024 took into consideration the submission made by the Petitioner and directed the Department to dispose the rectification application filed within a period of three month from the date of receipt of hon’ble high court order passed in the aforesaid case.

Our Comments:

As per Section 161 of the CGST Act, the affected person has to bring the error apparent within a period of three months from the date of issuance of such order or notice or certificate or any other document, however, no such rectification shall be done after a period of six months from the date of issuance of aforesaid documents. However, the said period of six months shall not apply in such cases where the rectification is purely in the nature of correction of a clerical or arithmetical error, arising from any accidental slip or omission:

FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT

An assessment order dated 30.08.2023 was issued in respect of alleged “non-payment of tax due of seigniorage fees under RCM” and alleged “short payment of taxes on outward supply”.

2. The petitioner filed a rectification application dated 27.11.2023 under Section 161 of applicable GST statutes. The petitioner states that such rectification petition was not disposed of within the time limit of six The present writ petition has been filed in these facts and circumstances seeking disposal thereof within the time frame fixed by this Court.

3. Mrs. K. Vasanthamala, learned Government Advocate, accepts notice for the respondent. She submits that if a reasonable time limit be fixed the rectification petition would be considered and disposed of in accordance with law.

4. In view of the aforesaid submissions, P.No.16407 of 2024 is disposed of by directing the respondent to consider and dispose of the rectification application dated 27.11.2023 in respect of assessment period 2020-21, within a period of three months from the date of receipt of a copy of this order. No costs.

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