GST Litigation / GST Rectification
Rectification of errors apparent on face of records - Sec. 161
Decision, Order (including amended and rectified orders), Notice, Certificate or any other document can be rectified to ensure the rights of taxpayers are protected.
can rectify any mistake that is 'error apparent on the face of the record' under GST
( no further investigation or enquiry is required - Kerala High Court )
( inconsistency with retrospective amendment in the law - Calcutta High Court )
'apparent' means 'clearly visible or understood; obvious'.
Mistakes that can be identified without the need of detailed interpretation and are visible on the face of records ( Clerical errors, arithmetical mistakes, errors of law, errors of fact, etc.)
Reply of the taxpayer is not considered by the the proper officer before issuing the final order - Can be rectified
Within 3 months from the date of issue of such order etc
Within a period of 6 months from the date of issue of such decision, order, notice, certificate, document etc.
For rectification of clerical or arithmetical error - can be corrected anytime.
GST portal allows taxpayers to file an online rectification application for an order
Reasons for rectifications are recorded in writing
Principle of natural justice to be compulsorily followed by the authority
Proper officer shall electronically upload the rectification Order in Form GST DRC-08.
Principle of natural justice shall have to be compulsorily followed by the authority who is in the position of carrying out such rectification.
The Apex Court in numerous cases has held that the most settled and basic principle is "Audi Alteram Partem" i.e., no one should be condemned unheard.
In the recent case of Spy Agro Industries Limited vs Union of India, the Hon'ble Andhra Pradesh High Court upheld that Section 161 of the principles of Natural Justice must be followed in a case where such rectification is adverse in nature and condemned the act of the GST Authorities of passing an order without providing an opportunity of being heard to the taxpayer. Further, the Court remanded back the matter before the authorities and directed them to conduct fresh proceedings and pass an order in accordance with the provisions of the GST Law.
