2021 (4) TMI 1091 - HC - GST

Input tax credit - seeking rectification of the GSTR-1 Form for the period of January 2018 to March 2018 - application was rejected on the ground that the period for making such an application expired at the end of September 2018 as per Section 37 of the West Bengal Goods and Services Tax Act, 2017 - period of January 2018 to March 2018 - HELD THAT - As per Section 37(3) of the West Bengal Goods and Services Tax Act, 2017, It is to be noted that the Act does not provide any provision for appeal. Furthermore, there is no provision for condoning of such a delay. There are no reason to interfere as the statute has provided a period of limitation for seeking rectification. The writ court cannot, by itself, condone such a limitation period. Condoning such delay would make the provision otiose and open the floodgates for similar cases - application dismissed.

Summary

Issues:
1. Rectification of accounts for the period of January 2018 to March 2018.
2. Rejection of claim for rectification by SGST authorities.
3. Interpretation of Section 37(3) of the West Bengal Goods and Services Tax Act, 2017.
4. Lack of provision for appeal or condoning of delay in rectification.

Analysis:
The petitioner sought rectification of accounts for the period of January 2018 to March 2018 due to an inadvertent error in classifying a sale to M/s. Bharat Exports as unregistered. Despite realizing the mistake after 1½ years, the petitioner applied for rectification, which was rejected by the SGST authorities citing Section 37(3) of the Act. This section mandates rectification of errors within a specified period and disallows rectification after the return for the month of September following the end of the financial year or the relevant annual return, whichever is earlier.

The court noted that the Act does not provide for an appeal mechanism or the condonation of delays in rectification. The judge emphasized that the statutory limitation for seeking rectification must be adhered to, and the court cannot intervene to condone such delays. Allowing such condonations could render the statutory provision meaningless and lead to a flood of similar cases. Consequently, the court dismissed the writ petition (WPA 236 of 2020) as there was no legal basis to interfere with the limitation period set by the statute.

Furthermore, the judgment highlighted that no provision existed for the condonation of delay in rectification, emphasizing the importance of complying with statutory timelines. The absence of an appeal mechanism or provisions for condoning delays underscores the significance of adhering to the prescribed timelines for rectification under the Act. As a result, the court did not find any grounds to grant relief to the petitioner and dismissed the petition.

In conclusion, the judgment underscores the importance of adhering to statutory timelines for rectification under the West Bengal Goods and Services Tax Act, 2017. The lack of provisions for appeal or condonation of delays necessitates strict compliance with the prescribed limitations for rectification. The court's decision to dismiss the petition reinforces the significance of respecting statutory timelines and upholding the integrity of the legal framework governing tax rectifications.