2024 (12) TMI 52 - HC - GST

Rejection of appeal preferred by the Petitioner herein against the Order of Adjudicating Authority dated 20th of December, 2023 - rejection on the ground that it was barred by limitation - rectification of the Order passed by the Adjudicating Authority - HELD THAT - From perusal of the certificate issued by the Executive Engineer, R B, Division Kupwara dated 26th of July, 2024, it transpires that, prima facie, there is some mistake committed by the Executive Engineer concerned in uploading the TDS against the Permanent Account Number (PAN) of the Petitioner. We are not sure as to whether this aspect of the matter, if brought to the notice of the Adjudicating Authority, would ultimately result into rectification of the Order passed by the Adjudicating Authority or not - the Petitioner deserves an opportunity to place this material, including the certificate dated 26th of July, 2024 and other relevant record, before the Adjudicating Authority and seek rectification in terms of Section 161 of the Central Goods and Services Tax Act, 2017. It is deemd appropriate and in the interests of justice to dispose of this Petition by permitting the Petitioner to file a rectification application under Section 161 of the Act of 2017 before the Adjudicating Authority within a period of two weeks from today - petition disposed off.

Summary

Issues:
1. Appeal rejection on the ground of limitation.
2. Error in the Order of Adjudicating Authority.
3. Seeking rectification of the Order.
4. Permission to file a rectification application.
5. Condonation of delay in filing rectification application.
6. Stay on coercive measures for recovery of demand.

Analysis:

1. The Petitioner filed a Petition under Article 226 challenging the rejection of an appeal by the Appellate Authority on grounds of limitation. The appeal was against an Order dated December 20, 2023, by the Adjudicating Authority. The Petitioner argued that the Adjudicating Authority's Order contained an error due to wrong TDS entries made by the Executive Engineer. The Petitioner contended that failure to rectify this mistake would cause financial harm. The Court noted the need for rectification and granted the Petitioner an opportunity to file a rectification application under Section 161 of the Central Goods and Services Tax Act, 2017.

2. The Court observed that the Petitioner's case involved seeking rectification of the Adjudicating Authority's Order based on evidence provided by the Executive Engineer's certificate. The Court acknowledged the possibility of rectification but emphasized the importance of presenting the certificate and relevant records before the Adjudicating Authority. The Court directed the Petitioner to file a rectification application within two weeks, condoning the delay due to pursuing the appeal in good faith.

3. Despite not delving into all aspects of the case, the Court deemed it just to allow the Petitioner to seek rectification. The Court highlighted the necessity of filing the rectification application within six months but granted an extension due to the Petitioner's genuine pursuit of legal remedies. The Court instructed that no coercive measures for demand recovery should be taken against the Petitioner until the rectification application is decided. However, if the Petitioner fails to file the application within the specified timeframe, the Respondents are permitted to proceed with recovery measures in accordance with the law.

4. The Court concluded the judgment by disposing of the Writ Petition, along with the connected CM, with the directions provided regarding the rectification application and the stay on coercive measures.