Madras HC Set Aside Order Imposing Tax Liability on Assessee Due to Mistakenly Uploading Duplicate Invoices in GSTR-1

Case Details: A. Ansari Abu Agencies v. Superintendent of GST and Central Excise - [2024] 161 taxmann.com 234 (Madras)

Judiciary and Counsel Details

• Senthilkumar Ramamoorthy, J.
• P. Rajkumar for the Petitioner. 
• K. Mohanamurali, Senior Standing Counsel for the Respondent.

Facts of the Case

The petitioner was a registered person under GST and filed a return in GSTR-1 in relation to outward supplies for period 2017-18. It committed an error by providing details pertaining to the same invoice more than once. Upon receipt of an intimation regarding such discrepancies, the petitioner replied thereto by stating that it was an inadvertent error and that the correct details were contained in the petitioner’s GSTR-3B return.

However, the tax liability was imposed on the petitioner for an inadvertent error although no revenue loss was suffered on such account. It filed writ petition against the demand order.

High Court Held

The Honorable High Court noted that the petitioner had submitted the reply to the notice and also submitted the certificates from the purchasers concerned. In those certificates, the purchasers stated that they had availed of input tax credit (ITC) by excluding the duplicate invoices.

Therefore, the Court held that the order imposing tax liability was to be set aside and matter was required to be reconsidered. The Court also directed the department to provide a reasonable opportunity to the petitioner, including a personal hearing, and thereafter issue a fresh order within a period of two months from the date of receipt of a copy of this order.