2025-VIL-1214-ALH
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SGST High Court Cases

GST – Rectification of error in Adjudication Order, Payment of fraudulently availed inadmissible Input Tax Credit - The adjudicating authority had found that the petitioner had fraudulently availed inadmissible ITC and issued fake invoices without any underlying supply of goods or services. The petitioner had submitted that it had realized the mistake and rectified its conduct by paying up the disputed ITC amount, but the adjudicating authority failed to consider this stand - Whether the adjudicating authority's failure to consider the petitioner's explanation regarding payment of the disputed ITC amount and rectification of its conduct amounts to an error apparent on the face of the record, which can be rectified under Section 161 of the CGST Act, 2017 – HELD - The adjudicating authority's failure to consider the petitioner's reply and the stand pressed by the petitioner during the oral hearing was a blatant error, which amounted to an error apparent on the face of the record. Once a particular stand is taken by the noticee/assessee, which is material to the proposed confirmation of demand and raises material issues, the minimum requirement of law is that the adjudicating authority would necessarily deal with it fairly and squarely by offering objective consideration and assigning specific reasons, especially since such authority proposes to reject the explanation and thus visit the noticee with adverse civil consequences - The order rejecting the petitioner's rectification application was also not valid, as the adjudicating authority had failed to consider the petitioner's case and the stand pressed before it. Such non-consideration of the case raised and pressed before the adjudicating authority necessarily involves an element of mistake apparent from the record, which can be rectified under Section 161 of the CGST Act - The order rejecting the petitioner's rectification application and the adjudication order are set aside. The matter was remitted to the adjudicating authority to pass a fresh order after giving a fresh opportunity of hearing to the petitioner – The petition is disposed of
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