HC Sets Aside GST Rectification Rejection Over Violation of Natural Justice

The petitioner sought rectification of an assessment order dated 17.02.2025 for FY 2020–21 under Section 161 of the GST Act, citing errors apparent from the record. The application for rectification was attempted on May 18, 2025, but was refiled on May 21, 2025, due to technical difficulties. The rectification was rejected by the GST officer on the grounds that the errors were not apparent and that the application was filed beyond the permissible three-month period. The petitioner argued that technical glitches delayed the filing and that the authorities failed to consider the merits of the request. Aggrieved, the petitioner filed a writ petition before the High Court.

Main Issue: Whether the rejection of a rectification application under Section 161 of the GST Act, without granting the petitioner an opportunity of hearing and without properly considering the grounds raised, amounted to non-application of mind and a violation of the principles of natural justice.

High Court’s Decision: The Court observed that the decision of the GST Officer to deny the rectification application was based on a lack of mental application and went against natural justice principles. The court noted that the petitioners were not given a hearing, which is a clear violation of principles of natural justice. The Delhi HC highlighted that the errors apparent from the record must be adjudged fairly and that delay caused by technical errors must be reasonably considered. The order was quashed, and the matter remanded for reconsideration within three months, after due hearing. Thus, the Hon’ble Court revoked the challenged order and remanded the case back to the GST Officer for reconsideration under Section 161.

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