GST Update

Desk of CA. Praveen Sharma – 873 Series (CAPS)

Madras High Court in the case of Nabati Food (India) Private Limited

The High Court disposed of the writ petition at the admission stage after hearing both parties.

The petitioner challenged the order dated 27.02.2025 passed under Section 73 and the rejection of the rectification request dated 26.08.2025.

It was argued that an earlier order dated 03.02.2025 had already covered the same period from 2017–18 to 2021–22.

The petitioner submitted that the demand determined in the order dated 03.02.2025 was repeated in the subsequent order dated 27.02.2025.

The earlier order dealt with excess ITC of Rs. 1,08,39,873/- based on GSTR-3B vs GSTR-2A mismatch.

In the impugned order, the same issue appeared again as Rs. 1,08,28,252/- along with additional allegations.

The petitioner claimed duplication, while the department argued that the order was detailed and not rectifiable under Section 161.

The Court observed a prima facie overlap in excess ITC demand and held that the rectification request should have been examined.

The Court set aside the rejection order dated 26.08.2025, remitted the matter for reconsideration, and permitted the petitioner to file a consolidated appeal if required.

link: CA. Praveen Sharma on Linkedin