The Government of NCT of Delhi, Department of Trade and Taxes, Policy Branch, issues crucial instructions (F. No.3(543)/GST/POLICY/2024/1312-18) on rectifying assessment orders under Section 161 of DGST Act, 2017.
Background:
Several representations have been received with regard to allowing rectification of demand orders issued by zonal/ field formations on account of difficulties faced by taxpayers/ dealers. It is submitted that allowing for rectification reduce the unnecessary, litigation. Further, it has been brought to the notice of this Department, that several demand orders passed by Proper Officer pertaining to the FY 2017-18 have apparent errors including clerical/ arithmetical mistakes which can be simply resolved by invoking the provisions of rectifications as available under the DGST Act, 2017.
Some of the points have been mentioned in the said instruction which the officer might pay attention to, while invoking the provisions of rectification.
- It should be ensured that the reasons for initiating suo-moto rectifications are recorded in writing before such proceedings are initiated.
- Where such powers are invoked on the application filed by the registered person, the application should be made within three months of the date of the order. Further, the rectification order in FORM GST DRC-08 should be passed within the period of six months of the date of original order.
- The power of rectification in the order is confined only to mistakes apparent on the face of record. The application for rectification can be made if the mistake is ex facie and the matter does not involve presentation of further arguments or replies or submissions by either counter parties. In simple terms, a decision on the debatable point of law or undisputed questions of fact is not a mistake apparent from the record.
- Even in certain scenarios the Authority may not have considered the arguments as submitted by the appellant then such missed submissions may also not be considered as mistake apparent on record as in case of supporting documents not considered etc. Therefore, if there are interpretation points on facts of the case or from the law perspective, then it cannot be processed through rectification procedure.
- The rectification may not be done where an appeal is preferred by the registered person to higher appellate forums.
The instruction also enlists the type of cases which may be considered for limited purposes rectification under section 161:
- Where amount of demand in question has already fully deposited/ reversed vide DRC-03 and adequately informed to the proper officer in the reply filed by the registered person/ dealer but the same has not been taken into consideration at the time of issuance of demand order.
- Where there is arithmetical error i.e. calculation error/ head error i.e. IGST, CGST and DGST in the demand order issued by the proper officer.