Corrigendums Correcting Quantification of Tax Recoverable Not Require Specific Approval of Monitoring Committee | HC

Case Details: Bedi & Bedi Associates v. Commissioner of CGST, Delhi Audit-1 - [2023] 157 taxmann.com 113 (Delhi)

Judiciary and Counsel Details

• Vibhu Bakhru & Amit Mahajan, JJ.
• Sunil Dalal, Sr. Adv. Tarun Chawla, Paresh Bhaguna, Ms. Manisha Saroha, Nikhil Beniwal and Navish Bhati, Advs. for the Petitioner. 
• Harpreet Singh and Ms. Suhani Mathur, Advs. for the Respondent.

Facts of the Case

The assessee had availed exemption from payment of GST in respect of outward supplies made to Polytechnic (vocational institution) in terms of Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017. The department issued show cause notice alleging that assessee was not entitled to exemption and was liable to pay GST along with interest and penalty.

Thereafter, two corrigendums were issued and demand raised was amended. The assessee challenged the SCN on ground that impugned corrigendums were not approved by Monitoring Committee.

High Court Held

The Honorable High Court noted that the corrigendums only purported to correct quantification of tax recoverable and any alteration in amount of tax on account of computational error might not require specific approval of Monitoring Committee.

Moreover, the impugned corrigendums were later placed before Monitoring Committee and were specifically approved. Therefore, the Court held that the premise on which the present petition was founded, did not hold good and liable to be dismissed.