Supreme court set aside the direction issued by the High Court being in the nature of issuing writ of mandamus to allow the writ petitioner to rectify Form GSTR-3B for the period - July to September 2017 cannot be sustained.
Section 39 of the CGST Act, 2017 — Rectification in GSTR3B return — The appellant department filed appeal against the judgment and order dated 05.05.2020 passed by the High Court of Delhi, whereby the writ petition filed by respondent was allowed and respondent was permitted to rectify Form GSTR-3B for the period in which error had occurred. The court observed that an express mechanism is provided under Section 39(9) read with Rule 61 and it was not open to the High Court to proceed on the assumption that the only remedy that can enable the assessee to enjoy the benefit of the seamless utilization of the ITC is by way of rectification of its return. Any unilateral change in such return as per the present dispensation, would have cascading effect on the recipients and suppliers associated with the concerned transactions. The assessee cannot be permitted to unilaterally carry out rectification of his returns submitted electronically in Form GSTR-3B, which inevitably would affect the obligations and liabilities of other stakeholders, because of the cascading effect in their electronic records. Further the challenge to the impugned Circular No. 26/26/2017-GST dated 29.12.2017, is unsustainable
Held that:- The Hon’ble Supreme Court allowed the appeal and set aside the impugned judgment and order.
Supreme court set aside the direction issued by the High Court being in the nature of issuing writ of mandamus to allow the writ petitioner to rectify Form GSTR-3B for the period - July to September 2017 cannot be sustained.
Section 39 of the CGST Act, 2017 — Rectification in GSTR3B return — The appellant department filed appeal against the judgment and order dated 05.05.2020 passed by the High Court of Delhi, whereby the writ petition filed by respondent was allowed and respondent was permitted to rectify Form GSTR-3B for the period in which error had occurred. The court observed that an express mechanism is provided under Section 39(9) read with Rule 61 and it was not open to the High Court to proceed on the assumption that the only remedy that can enable the assessee to enjoy the benefit of the seamless utilization of the ITC is by way of rectification of its return. Any unilateral change in such return as per the present dispensation, would have cascading effect on the recipients and suppliers associated with the concerned transactions. The assessee cannot be permitted to unilaterally carry out rectification of his returns submitted electronically in Form GSTR-3B, which inevitably would affect the obligations and liabilities of other stakeholders, because of the cascading effect in their electronic records. Further the challenge to the impugned Circular No. 26/26/2017-GST dated 29.12.2017, is unsustainable
Held that:- The Hon’ble Supreme Court allowed the appeal and set aside the impugned judgment and order.