Order Date – 31 May 2023

Parties: Instakart Services Pvt. Ltd. Vs Sales Tax Officer Class II & Ors.

Facts – 

• The Petitioner, Instakart Services Pvt. Ltd., had erroneously typed its liability for tax under the Central Goods and Services Tax Act, 2017 while filing returns for the month of September 2017. It discharged its liability by using the available balance of Input Tax Credit (ITC) in the electronic credit register; which the petitioner claims as an apparent error.
• However, the petitioner immediately reversed the ITC that was used for discharging the overstated liability and reported the same in its returns filed for the month of October, 2017. 
• Thereafter, on 22.12.2017, the petitioner filed its returns (GSTR-1) for the month of September, 2017 and correctly stated the tax liability
• Respondent no.1 issued a letter informing the petitioner as to the mismatch in the FORM GSTR-2A and FORM GSTR-3B for the relevant financial year. The petitioner clarified the same, however, without considering the same respondent n. 1 issued demand along with interest.

Issue – 

• Whether the petitioner correctly rectified the error in filing returns? 

Order – 

• The Divisional Bench of Hon’ble High Court held that if there is an inadvertent or typographical error that has crept in any returns, the taxpayer cannot be mulcted with the tax liability in excess of what is due and payable. It is apparent that the explanation provided by the petitioner has not been considered.
• The Court directed the concerned authority to pass an appropriate order pursuant to the show cause notice considering the petitioner’s responses to the show-cause notice as well as the averments made in this petition.
• The writ petition disposed of.