GST Update

 Desk of CA. Praveen Sharma – 1095  Series (CAPS) 

DELHI HIGH COURT Kapil Raj Anand v. GST Officer, Ward 109, Delhi

Decision: In favour of the Respondent

The Section 73 show-cause notice raised four issues relating to turnover reconciliation and input tax credit for FY 2018–19.

On 13 April 2024, the GST portal generated a digitally signed order stating that the proceedings had been dropped.

However, the annexure uploaded with that order dropped three issues but rejected the petitioner’s explanation on the fourth issue.

The disputed issue related to ITC availed from Sai Traders and Jain Cement Udyog.

The annexure confirmed aggregate tax, interest and penalty of ?71,42,956.

The Department issued a corrigendum on 28 May 2024, explaining that the incorrect portal option had inadvertently been selected.

The Court held that the portal-generated order and its incorporated annexure must be read as one composite document.

The annexure did not require a separate signature because it formed part of the digitally authenticated original order.

The corrigendum was a permissible rectification under Section 161: it neither conducted fresh adjudication nor introduced or enlarged the demand.

The Court sustained the corrigendum, directed availability of DRC-07 and DRC-08, and permitted the petitioner to pursue an appeal under Section 107 without rejection on limitation if filed within the specified period.

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Regards
CAPS