Case Details: Shree Bharat Motors Ltd. vs. Chief Commissioner of CT & GST, Odisha - [2026] 183 taxmann.com 248 (Orissa)
Judiciary and Counsel Details
- Harish Tandon, CJ. & Murahari Sri Raman, J.
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Rudra Prasad Kar, Sr. Adv. & Asit Kumar Dash, Adv. for the Petitioner.
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Sunil Mishra, Standing Counsel for CT for the Respondent.
Facts of the Case
The petitioner faced audit proceedings alleging non-reversal of ITC related to suppliers’ credit notes and excess ITC compared to Form GSTR-2A, while contending that ITC matched Form GSTR-2A and the reversal was netted off in Form GSTR-9, supported by the purchase register, reconciliation statements, and credit notes ledger. The adjudication order nonetheless raised a demand citing the absence of original credit notes. The petitioner filed a rectification application, asserting that reconciliations and portal data showed no excess ITC, but it was rejected without reasons, verification of portal figures, or a hearing, and the matter was placed before the High Court.
High Court Held
The High Court held that Section 161 of the CGST Act contemplates rectification of mistakes apparent on record and requires reasoned consideration of materials available before the authority. The Court observed that the record disclosed an exhaustive point-wise reply and an ITC reconciliation summary filed by the petitioner, which warranted verification before rejection of the rectification application. It was held that the order of rejection, founded solely on reference to the rectification provision without examining portal data or affording opportunity of hearing, suffered from legal infirmity. Accordingly, the rejection order was set aside.
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