Madras High Court Emphasises Applicability of Section 74 of Finance Act; Directs GST Department to Promptly Consider Rectification Application [Read Order]

The Madurai Bench of Madras High Court has issued a Writ of Mandamus, directing the Goods and Services Tax (GST) department to promptly consider the petitioner’s Rectification Application, highlighting the relevance of Section 74 of the Finance Act 1994.

The Writ Petition was filed by the petitioner, M/s. Cherry Retail, seeking redressal and rectification of an order issued by the Assistant Commissioner of Central Goods and Services Tax (CGST) and Central Excise.

The petitioner, represented by its Partner S. Kirubakaran, prayed for the issuance of a Writ of Mandamus, directing the respondent revenue to consider the petitioner’s Rectification Application, to rectify the order and pass an appropriate order taking into consideration Section 74 of the Finance Act 1994, within the time frame as may be fixed by the Court and consequently direct the 2^nd respondent to withdraw the letter issued to the petitioner.

Mr. S. Venkatasubramaniyan, the counsel appearing for the petitioner, argued the case, while the respondent revenue, The Assistant Commissioner of CGST and Central Excise and The Superintendent of CGST and Central Excise were represented by Mr. R. Nandakumar, Senior Panel Counsel, along with M/s. S. Ragaventhre, Junior Standing Counsel.

The petitioner argued that the court shall compel the respondents to review and rectify the order issued by it, considering the provisions of Section 74 of the Finance Act 1994, and subsequently withdraw the letter issued by the 2^nd respondent.

The main contention raised by the petitioner was that they had submitted a Rectification Application to rectify the mistake apparent from the record, but the respondents had failed to consider the application.

The bench refrained from going into the merits of the case but issued an unambiguous directive to the respondents.

The single bench of Justice S. Srimathy directed the GST department to evaluate the petitioner’s Rectification Application in accordance with the provisions of the law.

Further, the bench imposed a strict timeline, mandating that the process be completed within a period of six weeks from the date of receipt of a copy of the court’s order.

The judgment emphasised the importance of Section 74 of the Finance Act 1994 and the requirement of promptly considering the rectification application to rectify the mistake apparent from the record.

In result, the bench allowed the Writ Petition without costs and consequently, the connected miscellaneous petition was closed.

To Read the full text of the Order CLICK HERE

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