Supreme Court: CBIC V M/s Aberdare Technologies Pvt. Ltd. : SLP (C) Diary No. 6332/2025
Background:
The petitioner, CBIC filed SLP challenging the order of Bombay High Court [BHC] in the case of Aberdare Technologies Private Limited vs. Central Board of Indirect Taxes and Customs and Ors., wherein the BHC had directed Petitioner to open the GST portal to enable Respondent to amend/rectify Form GSTR-1 and GSTR-3B. The Respondent had filed statutory monthly GST returns within the prescribed time but, after some time in December 2023, realised that there were certain errors, which would not harm the interest of the revenue authorities.
Decision:
The Supreme court dismissed the SLP directing CBIC to re-examine the provisions/timelines fixed for correcting the bona fide errors. The Apex Court held that timelines should be realist as lapse/defect invariably is realized when input tax credit is denied to the purchaser when the benefit of tax paid is denied. It was further observed that human errors and mistakes are normal, and errors are also made by the Revenue. The Right to correct mistakes in the nature of clerical or arithmetical error is a right that flows from the right to do business and should not be denied unless there is a good justification and reason to deny the benefit of correction. The Court observed that the decisions of High courts in Bar Code India Limited v. Union of India and others (2024) SCC OnLine P&H 13853, and Yokohama India Private Limited v. State of Telangana (2023) 108 GSTR do not lay down good law and may be examined in another case.
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