Order Date – 08 May 2025 

Parties:  Tvl. Kajah Enterprises (P) Ltd. Vs Assistant Commissioner (Inspection) (ST-IU)

Facts –

• The Petitioner, Tvl. Kajah Enterprises (P) Ltd., filed a rectification application against an assessment order dated 06.01.2025, pointing out apparent errors. 
• The application was rejected by order dated 28.03.2025 without giving reasons or affording a personal hearing.

 Issue –

• Whether rejection of a rectification application under Section 161 of the GST Act without assigning reasons or affording a hearing is sustainable?

Order –

• The Single Bench of Hon’ble High Court observed that the order does not also indicate that there had been no error apparent on the record to reject the rectification. There is also no reasonings as to why there is no error apparent on the face of the record. For this reason, the impugned order dated 28.03.2025 is liable to be set aside.
• If pursuant to a Rectification Application, if a rectification is made and if it adversely affects the assessee, 3rd Proviso to section 161 contemplates an opportunity of hearing to be given. However, when a Rectification Application is made at the instance of assessee and the rectification is being sought to be rejected without considering the reasons for rectification or by giving reasons as to why such rectification could not be entertained, it is also imperative that the assessee should be put on notice.
• Accordingly, the order was quashed, and the department was directed to reconsider the rectification application after giving due hearing and reasoning.