Bonafide error in filing return – No loss of revenue – Technicalities should not come in the way for allowing rectification: Mum HC

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Bonafide error in filing return – No loss of revenue – Technicalities should not come in the way for allowing rectification: Mum HC

 

 

NRB BEARINGS LTD

Issue : Case of the petitioner is that they approached the jurisdictional officer/respondent no. 2 to allow them to alter/amend the invoice details pertaining to F.Y. 2017-18 in GSTR-1 for the month of December, 2019 –

As nothing was forthcoming from the respondent on the subject request, the present petition – Petitioner inter alia also prays that the Court be pleased to declare that respondent no. 4 is eligible to avail ITC to the extent of Rs. 64,36,188/- denied to them due to clerical error by petitioner –

The contention of the petitioner is that there is no provision either under the CGST Act or under the CGST Rules for rectification of bonafide errors made in GSTR-1; that there is also no revenue implication in that regard.

Ruling : Court [in M/s. Star Engineers (I) Pvt. Ltd. vs. Union of India & Ors. dated 14 December, 2023 – 2024-TIOL-03-HC-MUM-GST] considering the provisions of the CGST Act had observed that in cases where there was a bonafide error in filing of the return and when there was no loss of revenue caused to the Government/exchequer, the technicalities on any legitimate rectification ought not to come in the way of the assessee, so as to suffer an inadvertent error, which would have a cascading effect –

In the opinion of the Bench, the present situation as brought before the Court is certainly covered as discussed by the Court in Star Engineers (I) Pvt. Ltd. (supra) –

Petition is allowed by permitting the petitioner to rectify the GSTR-1 for the period 2017-18 – Insofar as prayer clause (b) – i.e eligibility of ITC is concerned, all contentions of the parties are expressly kept open.

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