Works Contractor challenges GST Order Months after its upload and Awareness: AP HC Dismisses Petition as Rectification already Pending [Read Order]

In the recent ruling, the Andhra Pradesh High Court dismissed a works contractor’s petition challenging the GST assessment order filed months after its upload and where the petitioner was already aware of the order. Thus, emphasized petition as Rectification already pending.

The Petitioner, Bodanpu Venkata Naga Jagan Mohan Reddy, a works contractor, challenged an assessment order dated 03.05.2023 for the period 2019-20 under the Goods and Service Tax Act, 2017. He contended that the assessment order, issued in Form DRC-07 by the Assistant Commissioner, Piduguralla Circle, was invalid because it lacked a physical or digital signature and a DocumentIdentification Number (DIN).

Further, the Petitioner argued that coercive action was initiated without considering his request for rectification and that the order violated principles of natural justice as it did not include proposals for penalty and interest.

The petitioner claimed to have become aware of the assessment order only in January 2024, after his proprietary business had shut down. He subsequently filed an application for rectification under Section 161 of the GST Act,2017 which was rejected by the authorities as being time-barred. Following this, the petitioner approached the High Court.

The Section 161 of the Goods and Service Act, 2017 explained that: Rectification of errors apparent on the face of record.

“Without prejudice to the provisions of section 160, and notwithstanding anything contained in any other provisions of this Act, any authority, who has passed or issued any decision or order or notice or certificate or any other document, may rectify any error which is apparent on the face of record in such decision or order or notice or certificate or any other document, either on its own motion or where such error is brought to its notice by any officer appointed under this Act or an officer appointed under the State Goods and Services Tax Act or an officer appointed under the Union Territory Goods and Services Tax Act or by the affected person within a period of three months from the date of issue of such decision or order or notice or certificate or any other document, as the case may be:

Provided that no such rectification shall be done after a period of six months from the date of issue of such decision or order or notice or certificate or any other document:

Provided further that the said period of six months shall not apply in such cases where the rectification is purely in the nature of correction of a clerical or arithmetical error, arising from any accidental slip or omission:”

The Counsel for the Petitioner, Srinivasarao Kudupudi, stated that the petitioner was sole proprietary concern and had shut-down its business and the petitioner came to know of the said order only in January, 2024 when he moved an application under Section 161 of the GST Act, 2017, then in such circumstances the delay, if any, in approaching this Court should be condoned.

The Bench of Andhra Pradesh High Court comprising Justice R. Raghunandan Rao and Justice T.C.D. Sekhar, heard and reviewed the matter challenged by the petitioner.

The High Court, after considering the material on record, observed that the assessment order was passed on 03.05.2023, and the GST portal's process indicated its upload around that time and noted that the petitioner did not file an appeal or a writ petition promptly after the order was issued. Even accepting the petitioner's claim of awareness in January 2024, the Court found a significant delay in approaching the High Court and declined to condone it.

Thus, the petition was dismissed with no order as to costs.

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