Rectification of Arithmetical Error Allowed Without Time Limit | HC

Case Details: J.V.M. Industries vs. State of Uttarakhand - [2025] 176 taxmann.com 162 (Uttarakhand)

Judiciary and Counsel Details

• G. Narendar, CJ. & Alok Mahra, J.
• Dr. Govind Singh Latwal & Pankaj Tiwari for the Petitioner.
• Ms Pooja Banga, Ld. Brief Holder for the Respondent.

Facts of the Case

The petitioner, being the assessee, filed a writ petition seeking rectification of an arithmetical error in the order passed by the adjudicating authority under the CGST Act and the Uttarakhand GST Act. The petitioner pointed out that due to the said error, the tax demand reflected in the order exceeded the taxable value of the turnover or transactions undertaken for the relevant period. The petitioner submitted that the error was purely arithmetical in nature and contended that rectification could be sought under section 161 of the CGST Act, invoking the second proviso thereto, which excludes the limitation period of six months in cases of clerical or arithmetical errors arising from accidental slip or omission. The matter was accordingly placed before the Uttarakhand High Court.

High Court Held

The Uttarakhand High Court held that the error pointed out by the petitioner was a mere arithmetical error falling within the scope of the second proviso to section 161 of the CGST Act, which excludes the application of the six-month limitation for correction of clerical or arithmetical mistakes. It further held that the case presented by the petitioner squarely fell within this provision, thereby granting liberty to prefer an application under the second proviso to section 161. The Court directed that such an application, if filed, would be considered by the adjudicating authority without reference to the limitation period prescribed under the first proviso.