Rectification of advance ruling [Section 102] - GST Ready Reckoner - GST

Rectification of advance ruling As per Section 102 6 months-maximum time limit for Rectification 1. The rectification may be made by the AAR or Appellate Authority within six months from the date of the order, and shall not result in a substantial amendment to the order being rectified. Howsoever It is not clear from the language of section 102, as to whether the error has to be noticed within six months or the amendment has to be made within six months. The rectification shall not arise on account of any interpretational issues or change in views and opinions of the members of the AAR and Appellate Authority. Opportunity of being heard in case of increase in the tax liability or reduction of admissible input tax credit 2. Any rectification resulting in an increase in the tax liability or reduction of admissible input tax credit shall be carried out only after giving the applicant/appellant an opportunity of being heard. 3. In the Proviso to this section, it is mentioned that no rectification which has the effect of enhancing the tax liability or reducing the amount of admissible input tax credit shall be made unless the applicant or the appellant has been given an opportunity of being heard. Notice has to be issued either to the applicant or the appellant 4. If the appellant is the concerned officer or the jurisdictional officer, then it is sufficient if the notice is issued to the appellant and not to the applicant. As per the above provision, the notice has to be issued either to the applicant or the appellant. Principle of rectification of mistake/ error apparent on the face of record 5. The AAR or Appellate authority may amend the order to rectify any mistake apparent from records, if such mistake: (a) Is noticed by it on its own accord, or (b) Is brought to its notice by the concerned or the jurisdictional officer or the applicant/appellant Certain Justifications 1. A decision involving debatable point or where two views exist is not a mistake apparent from records. [Ref: PAC Systems Pvt. Ltd. Vs. CC 2006 (3) TMI 449 - CESTAT, MUMBAI] 2. An error apparent from the face of the record cannot be defined exhaustively and must be left to be determined judicially on the facts of each case. [Ref: ACIT vs. Saurashtra Kutch Stock Exchange 2023 (3) TMI 39 - ITAT BANGALORE] 3. A rectification is possible only when a glaring mistake of fact or law has been made. [Ref: CIT cs. Hero Cycles, 2023 (5) TMI 229 - ITAT KOLKATA ] 4. It should be possible to gather the mistake from the record available, without requiring outside evidence. [Ref: M.K. Venkatachalam, ITO vs. Bombay Dyeing , 2013 (4) TMI 489 - DELHI HIGH COURT]