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2023 (6) TMI 231 - HC - GSTCorrection of mistakes in (FORM GSTR-3B) returns - erroneous typing of liability for tax under the Central Goods and Services Tax Act, 2017 as ₹32,33,36,855/- instead of ₹3,23,36,855/- - HELD THAT - The petitioner clarified the reasons for the mismatch by a communication dated 18.01.2023. Thereafter respondents scheduled a personal hearing on 20.04.2023 and the petitioner was afforded a personal hearing on that date. The petitioner also filed an additional submission dated 27.04.2023 explaining the reasons for reversing the excess amount of ITC - Notwithstanding the explanation provided by the petitioner, respondent no. 1 issued a show cause notice dated 12.05.2023 raising an aggregate demand of ₹55,39,99,352/- as mentioned in the intimation dated 19.12.2022. Surely, if there is an inadvertent or typographical error that has crept in any returns, the taxpayer cannot be mulcted with the tax liability in excess of what is due and payable. It is apparent that the explanation provided by the petitioner has not been considered. It is considered apposite to direct the concerned authority to pass an appropriate order pursuant to the show cause notice considering the petitioner s responses to the show-cause notice as well as the averments made in this petition - List on 24.07.2023.
Issues Involved:
The petitioner challenged a show cause notice and an intimation related to a tax liability error in returns filed under the Central Goods and Services Tax Act, 2017. Impugned Show Cause Notice and Intimation: The petitioner filed a petition challenging a show cause notice and an intimation related to an error in its tax liability under the CGST Act. The error stemmed from a mistake in the returns filed for September 2017, where the petitioner erroneously typed its liability as Rs. 32,33,36,855 instead of Rs. 3,23,36,855. The petitioner used Input Tax Credit (ITC) to discharge the liability, claiming it as an apparent error. The petitioner rectified the mistake by reversing the ITC used and correcting the liability in subsequent returns. Despite following the procedure outlined in Circular No.26 dated 29.12.2017, the benefit was not extended to the petitioner as the circular was issued subsequently. Respondents' Actions and Petitioner's Clarifications: The respondents issued a demand for Rs. 55,39,99,352 on 19.12.2022, comprising tax demand and interest. The petitioner clarified the reasons for the mismatch, scheduled a personal hearing, and submitted additional explanations. However, a show cause notice was issued on 12.05.2023, raising the same demand. The petitioner filed the present petition due to the lack of consideration for the explanations provided. Court's Decision and Directions: The Court acknowledged that taxpayers should not be burdened with tax liability exceeding what is due for inadvertent errors. The show cause notice dated 12.05.2023 was quashed, with an assurance from the respondents to consider all clarifications and pass an appropriate order. The concerned authority was directed to pass an order within three weeks, considering the petitioner's responses and the petition's contentions. No coercive steps were to be taken against the petitioner until the next hearing scheduled for 24.07.2023. Respondent nos. 2 to 4 were deemed unnecessary parties and were removed from the case.
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