GST Rectification Application Rejected Stating ‘No errors apparent on the face of the record’: Madras HC sets aside Rejection Order [Read Order]

In a recent ruling, the Madurai bench of Madras High Court quashed an order rejecting a GST ( Goods and Services Tax) rectification application on the ground that the petitioner was denied a hearing, violating the principles of natural justice.

The case, heard by Justice C. Saravanan, involved a challenge to the rejection of an application filed under Section 161 of the GST Act by KR Agencies, seeking rectification of an assessment order for the financial year 2020-21.

The petitioner, aggrieved by the assessment order dated 17 February 2025, had initially attempted to file a rectification application on 18 May 2025. However, due to technical issues on the GST portal, the application could not be submitted.

The petitioner then successfully refiled the application on 21 May 2025. Despite this, the respondent authority rejected the application stating that there were no “errors apparent on the face of the record.”

The High Court observed that the impugned rejection order displayed a clear non-application of mind. It noted that no opportunity of hearing was granted to the petitioner before passing the order, which is a fundamental requirement under law. Justice Saravanan remarked that such procedural lapse rendered the order unsustainable.

Accordingly, the Court set aside the rejection order and remanded the matter back to the concerned GST authority. It directed the authority to pass a fresh order under Section 161 of the GST Act after providing the petitioner an opportunity for personal hearing. The entire direction is to be completed within three months from the date of receipt of the order, said the bench.

With this direction, the writ petition was disposed of.

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