Order Date – 21 November 2023

Parties: Bedi and Bedi Associates Vs Commissioner of CGST Delhi Audit -1 & Anr.

Facts –

• The Petitioner, Bedi and Bedi Associates, had availed of exemption from payment of Goods and Services Tax in respect of outward supplies made to a Polytechnic (Vocational Institution) in terms of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017.
• Consequent to the audit, ADT-02 was issued alleging that GST was recoverable from the petitioner for wrongfully availing the exemption along with interest and penalty as the supplies made to a Polytechnic could not be considered as supplies to an educational institution.
• However, thereafter, two corrigendums were issued – Corrigendum dated 25.08.2023 and Corrigendum dated 28.08.2023 and the demand raised was amended. Subsequently a show cause notice was issued alleging the recovery of GST along with interest and penalty. But the said corrigendums were not approved by the Monitoring Committee.

Issue –

• Whether recovery of GST is valid if corrigendum to ADT-02 were not approved by the Monitoring Committee?

Order –

• The Divisional Bench of Hon’ble High Court observed that a plain reading of the final audit observations, as approved by the Monitoring Committee, indicates that the demand was founded on the basis that the petitioner was not entitled to the benefit of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. The impugned corrigendums only purported to correct the quantification of the tax recoverable on the aforesaid basis. Any alteration in the amount of tax on account of a computational error may not require specific approval of the Monitoring Committee.
• Prima facie, the impugned corrigendums or the impugned SCN are not liable to be set aside on the aforesaid ground. Further the department submitted that the impugned corrigendums were placed before the Monitoring Committee at a meeting held on 17.08.2023 and were specifically approved.
• In view of the above, the premise on which the present petition is founded, does not hold good. The petition is, accordingly, dismissed.