Union Of India & Ors. Vs BRIJ Systems Ltd & Ors. (Supreme Court of India)
In a landmark judgment, Hon’ble Supreme Court firmly asserted that rectifying clerical or arithmetical errors is a fundamental right for businesses and reinforced the principle that human errors in tax filings are inevitable and must be allowed to be corrected. The Court categorically held that the right to rectify inadvertent mistakes— whether clerical or arithmetical-is an integral part of the right to do business and should not be denied on mere technicalities.
The Court strongly emphasized that a seller’s mistake in reporting GST details cannot lead to the denial of ITC to the buyer, especially when the tax has already been paid to the government. When no loss of revenue occurs, rectification should be permitted, and software limitations cannot be used as an excuse to block legitimate claims.
Hon’ble Court directed the government to re-examine timelines for rectifying bona fide errors, as denying ITC due to such mistakes unfairly burdens purchasers.
Acknowledging that errors are human, even within the Revenue, the Court appointed Ld. Mr. Arvind P. Datar Sir, as an Amicus Curiae to assist in the case.
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
