Rectification application rejected due to non-cooperation by assessee during assessment
In a significant ruling, the Hon’ble Madras High Court has upheld the rejection of a rectification application filed under section 161 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”), citing non-cooperation by the assessee during the assessment process. This verdict emerged from the case of Seoyon E-Hwa Summit Automotive India (P.) Ltd. v. Deputy Commissioner (ST)-I [W.P. Nos. 16535 & 16538 of 2023 dated June 6, 2023].
Facts:
Seoyon E-Hwa Summit Automotive India (P.) Ltd. (“the Petitioner”) was issued various notices including ASMT-10, Form GST DRC-01A and a Show Cause Notice (“the SCN”) dated December 6, 2021, June 29, 2022 and November 18, 2022 respectively by the Revenue Department, all pertaining to issues related to Input Tax Credit (“ITC”).
The revenue department contended that the Petitioner was given sufficient opportunities prior to finalisation of assessment to justify its claim of ITC, and the SCN has clearly set out the claim of ITC calling upon the Petitioner to furnish the details of ITC category wise/tax type wise and to explain the variations that he has noticed and the Petitioner has not cooperated in the proceedings for assessment.
The Petitioner responded to the notices furnish the break-up of the ITC claimed under GSTR 3B as sought for by the officer and attempt to reconcile its claim of ITC in the GSTR 3B return with the ITC reflected in GSTR 2A and GSTR 9 as GSTR 2A is auto populated based on the input set out in GSTR 9, which is filed by the supplier.
The Petitioner filed an application under Section 161 of the CGST Act seeking rectification of errors allegedly apparent on record.
Issue:
Whether the Petitioner can file rectification application even in case where he has not co-operated with Assessing officer for assessment?
Held:
The Hon’ble Madras High Court in W.P. Nos. 16535 & 16538 of 2023 held as under:
