2017-18 outward case, Goods and Services Tax - GST

[Vel Murugan]

Crux of the case: due to ignorance and being new to GST, in 2017-18, the taxpayer had inadvertently wrongly declared our outward liabilities in GSTR-1 in IGST, CGST, SGST, and vice-versa, resulting in the demand order. As per the order dated 21.12.2023, they have to pay Rs.743 223/- towards IGST. However, due to the above wrong showing in GSTR-1, they had paid excess tax towards CGST and SGST @ 307456/- each, totaling 614913/-. Hence, fled a rectification application with a request that this point has to be reconsidered and enclose a copy of judgement dated 03.01.2024 of Hon'ble Kerala High Court in support of their defense. Given undertaking to pay the differential liability, if any after adjusting the excess paid cgst and sgst. However, the rectification application was rejected and they want to go on appeal. kindly advise.

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[KASTURI SETHI]

What is the date of rejection of Rectification Application ? 

Period consumed in deciding (rejecting) Rectification Application by the department  will be excluded for working out  the period of limitation for filing appeal. (from the date on which application for rectification was rejected.)

2024 (12) TMI 140 - MADRAS HIGH COURT M/S. SPK AND CO, REPRESENTED BY ITS JOINT MANAGING PARTNER VERSUS THE STATE TAX OFFICER, MUTHUKULATHUR Challenge to order of assessment and the order of rectification passed by the respondent - vague SCN - calculation of period of limitation from the date when the original assessment order was passed - HELD THAT:- After assessment order has been made, Section 161 of the GST Act provides for an application to be made for rectification. Such rectification can be disposed either in favour of the assessee or against him. If any rectification is made as prayed for, the same would get merged into the original order. Just because the rectification application has been rejected, the period of limitation to challenge the original assessment order cannot be said to begin from the date on which the original order was passed, it would only count from the date on which the order of rectification has been passed. In the present case, the original order of assessment was made on 07.08.2024 and the order in rectification was made on 12.11.2024. Therefore, the period of limitation for challenging the order of assessment dated 07.08.2024 shall start ticking from the date of rejection of the rectification application i.e., from 12.11.2024. It is made clear that when the appeal is filed by the assessee as against the original order of assessment, the period of limitation shall be calculated from the date on which the rectification had been dismissed. Petition disposed off. No.- W. P. (MD)Nos. 27787 and 27788 of 2024 And W. M. P. (MD)Nos. 23585 and 23586 of 2024 Dated.- November 22, 2024 Citations:   M/s. MD Electric Co Versus The State Tax Officer Chennai - 2024 (10) TMI 1520 - MADRAS HIGH COURT   Honourable Mr. Justice K. Kumaresh Babu For the Petitioner : Mr. B. Vijay Karthikeyan For the Respondent : Mr. J. K. Jayaselan Government Advocate COMMON ORDER Heard Mr.B.Vijay Karthikeyan, learned counsel for the petitioner and Mr.J.K.Jayaselan, learned Government Advocate for the respondent. 2. The Writ Petitions have been filed challenging the order of assessment and the order of rectification passed by the respondent, pertaining to the year 2019-2020 and 2022-2023. 3. The ground raised by the learned counsel for the petitioner is that the show cause notice was vague and he has also relied upon the order of the learned Single Judge of this Court in the case of MD Electric Co Vs State Tax Officer, Chennai, reported in (2024) 17 Centax 348 (Mad.) and contended that this Court had set aside the impugned order of assessment in similar case. 4. A perusal of the said order would show that the order impugned therein was the show cause notice which was found to be vague. In the present case, pursuant to the show cause notice, the petitioner has filed a detailed reply. On consideration of the detailed reply, the impugned order has been passed. The rectification application has been dismissed holding that the grounds raised in the rectification petition are all in the nature of challenging the order of assessment. Further, the challenge in the Writ Petition apart from the vagueness of the show cause notice which had already been held, since had been acted upon by the petitioner, the said claim could not be raised in the present Writ Petition. All other grounds are on the merits of the assessment order. Therefore, it would be proper for the petitioner to approach the appropriate authority. 5. At this juncture, the learned counsel for the petitioner would submit that the appellate authority would insist on calculating the period of limitation from the date when the original assessment order was passed and in such case, the appeal would be much beyond the period of limitation and would apprehend that the appeal would not be entertained as it is being made beyond the period of limitation. After assessment order has been made, Section 161 of the GST Act provides for an application to be made for rectification. Such rectification can be disposed either in favour of the assessee or against him. If any rectification is made as prayed for, the same would get merged into the original order. Just because the rectification application has been rejected, the period of limitation to challenge the original assessment order cannot be said to begin from the date on which the original order was passed, it would only count from the date on which the order of rectification has been passed. 6. In the present case, the original order of assessment was made on 07.08.2024 and the order in rectification was made on 12.11.2024. Therefore, the period of limitation for challenging the order of assessment dated 07.08.2024 shall start ticking from the date of rejection of the rectification application i.e., from 12.11.2024. It is made clear that when the appeal is filed by the assessee as against the original order of assessment, the period of limitation shall be calculated from the date on which the rectification had been dismissed. 7. With the above said liberty, the Writ Petitions are disposed of. No costs. Consequently, connected miscellaneous petitions are closed.