GST Demand Order Passed alleging Excess ITC Claim: Madras HC directs to Consider Application for Rectification of Order [Read Order]
The High Court ordered the respondent authority to consider and dispose of the application for rectification within four weeks from the date of receipt of the order of the Court.
![GST Demand Order Passed alleging Excess ITC Claim: Madras HC directs to Consider Application for Rectification of Order [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/05/gst-demand-site-img.jpg "GST Demand Order Passed alleging Excess ITC Claim: Madras HC directs to Consider Application for Rectification of Order [Read Order]")
The Madras High Court has directed the GST ( Goods and Services Tax ) department to consider and dispose of a rectification application filed by the petitioner rectifying the order passed on the grounds of alleged excess Input Tax Credit ( ITC ) claim. The petitioner had approached the Court seeking a Writ of Mandamus to compel the respondent authority to reassess and pass a...
The Madras High Court has directed the GST ( Goods and Services Tax ) department to consider and dispose of a rectification application filed by the petitioner rectifying the order passed on the grounds of alleged excess Input Tax Credit ( ITC ) claim.
The petitioner had approached the Court seeking a Writ of Mandamus to compel the respondent authority to reassess and pass a rectification order on an application submitted on 27.03.2025. The disputed demand order, dated 02.07.2024, alleged that the petitioner had claimed excess ITC for the assessment year 2020-21, resulting in a tax demand of ₹3,79,336, along with ₹4,013 as interest.
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The petitioner argued that the assessing authority did not take into account pertinent facts, in as much as the Reverse Charge Mechanism (RCM) payments already executed. Asserting that the default had prejudicially impacted the order's outcome, the petitioner presented a rectification application to correct it. The petitioner, however, moved the High Court after receiving no response from the department.
At the hearing, the Government Advocate for the respondent assured the Court that the application of the petitioner would be considered and disposed of within the timeframe ordered by the Court.
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Noting the narrow scope of relief prayed for and without entering into the merits of the case of the petitioner, the High Court ordered the respondent authority to consider and dispose of the application for rectification dated 27.03.2025 within four weeks from the date of receipt of the order of the Court. The Writ Petition was accordingly disposed of, with no order as to costs.
To Read the full text of the Order CLICK HERE
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