S. 161 CGST Act allows Assessee to apply for rectification within time prescribed: Calcutta HC directs to allow Rectification Application [Read Order]

The Calcutta High Court directed the GST department to allow rectification application under Sections 161 of the Central Goods and Service Tax ( CGST ) Act, 2017. iT was observed that Section 161 of the act allows assessee to apply for rectification within time prescribed.

It was submitted that the petitioner Orissa Stevedores Ltd.had applied for rectification of order dated 30th December, 2023 made under section 73 of Goods and Services Tax Act, 2017. Further stated that he can so apply under section 161 in Odisha Goods and Services Tax Act, 2017. The application was rejected by order dated 8th April, 2024. His client was not given opportunity of hearing.

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Mr. Mishra Standing Counsel appeared on behalf of revenue and submitted that there is no mandate to give hearing on an application for rectification of error apparent on face of the record. Impugned order cannot be said to be adverse to petitioner therefore, there was no question of giving hearing. All that was said is, there was no apparent error and petitioner told that if dissatisfied with the assessment, it may prefer appeal.

On perusing impugned order and attached thereto reason there is not mentioned what rectification was sought, as considered to find no error in said order dated 30th December, 2023.

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The court refused to interfere on whether petitioner was entitled to hearing in support of its rectification application. However, section 161 does allow the assessee to apply for rectification within time prescribed. It appears such application was made. Impugned order does not disclose any reason for rejection thereof.

Mr. Sahoo appeared for the petitioner submitted that, his client is affected by said order dated 30th December, 2023. Hence, it applied for rectification. In that view of the matter third proviso requires notice of hearing to be given to his client. Mr. Mishra responds, only if the rectification adversely affects the assessee, is he entitled to hearing. That means, if there is enhancement by the rectification then the assessee is to be heard.

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Section 161 clearly provides for, inter alia, affected person to apply for rectification. The third proviso says, where the rectification adversely affects any person, he is to be given hearing. The authority in already having passed impugned order, hereby set aside, had decided no rectification was necessary.

The division bench of Justice Arindam Sinha and Justice M.S. Sahoo observed that the assessee feeling it stood affected by order dated 30th December, 2023 and found that the appeal against the assessment order would be on merits. Further directed the authority to deal with the rectification application on restoration in accordance with law.

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