2025 (5) TMI 1732 - HC - GST

Seeking correction of factual and computation issues in the adjudicating order - Rectification application filed u/s 73 - beyond the time prescribed limitation - requisite pre-deposit - HELD THAT - Taking into consideration the fact that the petitioners had filed a rectification application seeking correction of factual and computation issues which came to be rejected by order dated 28th October 2024 with a direction upon the petitioners to file an appeal and despite the petitioners filing the appeal therefrom the same had been rejected and noting that the department is far more equipped to access the records of the case which are available on the portal I am of the view that at the first instance the adjudicatory process must be completed before the departmental authorities prior to the petitioner approaching the appellate authority. In view thereof while setting aside the order dated 25th February 2025 passed by the appellate authority and the order dated 28th October 2024 passed by the proper officer I remand the matter back to the proper officer being the respondent no. 2 for reconsideration of the petitioner s rectification application. The proper officer is directed to hear out such application preferably within a period of 6 weeks from the date of communication of this order upon providing an opportunity of personal hearing to the petitioner. Since this Court has not gone into the merits of the case and has not called for affidavits the allegations made in the writ petition are deemed not to have been admitted by the respondents. With the above observations and directions the writ petition stands disposed of.

Summary

The Calcutta High Court, in a writ petition challenging the appellate order dated 25th February 2025 under Section 107 of the CGST/WBGST Act, 2017, addressed the rejection of a rectification application filed under Section 73 for the tax period April 2018 to March 2019. The rectification application, filed on 22nd October 2024, was disallowed by the proper officer on grounds of limitation, directing the petitioner to file an appeal. Although the petitioners filed the appeal with the requisite pre-deposit, the appellate authority rejected it on limitation grounds.The Court noted the multi-tiered adjudication scheme under the Act and the pending constitution of the appellate tribunal, ordinarily discouraging interference at this stage. However, emphasizing that the rectification application involved factual and computational corrections and that the department is better positioned to assess records available on the portal, the Court held that the adjudicatory process must be completed before the departmental authorities prior to appellate proceedings.Accordingly, the Court set aside both the appellate order dated 25th February 2025 and the proper officer's order dated 28th October 2024, and remanded the matter to the proper officer (respondent no. 2) for reconsideration of the rectification application. The proper officer was directed to provide an opportunity of personal hearing and decide preferably within six weeks. The Court expressly refrained from adjudicating on merits or admitting allegations in the writ petition. The writ petition was disposed of with these directions.