Facts of the Case: In this case, a show-cause notice was issued in Form GST DRC-01 by the State Tax Officer alleging difference in outward supplies between GSTR-1 and GSTR-3B. The petitioner explained that the turnover of its sister concern had inadvertently been uploaded in GSTR-1 for December 2017, which created the discrepancy. Regarding ITC mismatches, it was argued that during FY 2017–18, GSTR-2A was not operational, and thus differences should not be treated adversely.
Despite the explanation, the respondent passed an Order-in-Original dated 20.12.2023 (Form GST DRC-07) raising a demand of ₹40,27,272 with interest and penalty.
The petitioner therefore approached the High Court, relying on Aberdate Technologies Pvt. Ltd. v. CBIC (Bombay HC, affirmed by SC in 2025), which allowed rectification of bona fide clerical errors in GST returns.
Issue: Whether the petitioner should be allowed to rectify inadvertent clerical errors in GSTR-1, even after expiry of the statutory timelines under Section 39(9) of the GST Act, when such rectification causes no loss of revenue.
Held that: The Court noted that the petitioner had inadvertently shown sister concern’s turnover in its GSTR-1, which was corroborated by records of the sister concern.
Reliance placed upon Aberdate Technologies (P.) Ltd. v. CBIC (Supreme Court), Star Engineers (I) Pvt. Ltd. v. UOI, Sun Dye Chem v. AC, GST. These precedents emphasized that Section 37(3) and Section 39(9) of CGST Act must be interpreted purposively, allowing correction of inadvertent and bona fide mistakes, especially where no revenue loss occurs.
The Supreme Court in Aberdate Technologies (supra) had dismissed CBIC’s appeal, stressing that clerical/technical errors must be correctable, and software limitations cannot be an excuse to deny rectification.
Applying this reasoning, the Court allowed the writ petition and directed the impugned Appellate Order was quashed and set aside. The petitioner was permitted to file a rectified Form GSTR-1 within four weeks, to be accepted manually by the Department.
Case Name: M/s SANGHVI METAL CORPORATION v. UNION OF INDIA & ORS. dated 07.08.2025
To read the complete judgment 2025 Taxo.online 2072
