Madras HC Instructs Revenue Authority to Expedite GST Rectification Process

In the matter of M. Venkataraj versus Assistant Commissioner (ST) [W.P. No. 18949 of 2023 dated November 8, 2023], the Honorable Madras High Court instructed the Revenue Department to address the rectification application submitted by the Petitioner within a timeframe of three months from the issuance of this order.

Facts:

The petitioner, Venkataraj, operates a business registered under the GST with the name M/s. Sri Malleswara Enterprises. The Revenue Department, also known as the Respondent, issued a Show Cause Notice under Section 74(5) of the Central Goods and Services Tax Act, 2017 (CGST Act). The notice alleged that the petitioner was liable to pay taxes under Sections 9(1) and 9(3) of the CGST Act due to the purported failure to disclose the correct turnover concerning the disposal of minerals and seigniorage fee (royalty paid to the government for mineral removal or consumption). Consequently, the Respondent proposed to demand taxes on both forward and reverse charge basis for the alleged suppression of aggregate turnover and seigniorage fees. The Petitioner contested these figures, asserting their accuracy based on the annual returns, and subsequently filed a rectification application on May 30, 2023. However, the Respondent argued that the rectification application was not submitted due to a discrepancy in the dates of receipt and application.

Held:

Upon review, the Honorable Madras High Court in W.P. No. 18949 of 2023 observed that the petitioner’s submission was limited to addressing the rectification application. Consequently, the High Court disposed of the writ petition and instructed the Respondent to address the rectification application filed by the Petitioner within three months from the date of receiving a copy of this order.