2025 (6) TMI 1659 - HC - GST

Rejection of application filed u/s 161 of the TNGST Act 2017 for rectification of the assessment order - typographical errors - violation of principles of natural justice - HELD THAT - This court finds that there is a violation of principles of natural justice. Considering the same the second mentioned impugned order dated 05.06.2025 is set aside and it is remitted back to the respondent to pass a fresh order under Section 161 of the TNGST Act 2017. The respondent is directed to pass a fresh order as expeditiously as possible after affording an opportunity of hearing to the petitioner. Petition allowed by way of remand.

Summary

The Madras High Court, through Justice C. Saravanan, allowed the writ petition challenging the assessment order dated 24.01.2025 and the subsequent rejection dated 05.06.2025 of the rectification application under Section 161 of the TNGST Act, 2017. The petitioner contended that despite having paid Rs. 14,71,418/- prior to responding to the show cause notice (DRC 01 dated 26.11.2024), the respondent confirmed a demand of Rs. 6,82,488/-. The rectification application was rejected on the ground that the alleged error did not constitute an "error apparent on the face of the record," as Section 161 limits rectification to clerical or arithmetical mistakes not requiring substantive examination.The Court found a violation of the principles of natural justice in the rejection order and set aside the order dated 05.06.2025. It remitted the matter back to the respondent to pass a fresh order under Section 161 after affording the petitioner an opportunity of hearing. The petition was allowed with no costs, and connected miscellaneous petitions were closed.