Bharti Airtel Limited vs. Union Of INDIA & Ors.
Held
The Court held that the restriction on rectifying GSTR-3B in the same period the error occurred, as stipulated by para 4 of Circular No. 26/26/2017-GST, is arbitrary and contrary to the GST Act. It allowed the petitioner to rectify its GSTR-3B for the period in which the error occurred.
Facts
Bharti Airtel Limited, due to the non-operationalization of GSTR-2 and GSTR-3 and the introduction of a summary GSTR-3B, inadvertently overpaid GST by approximately Rs. 923 crores between July and September 2017. The company discovered the excess payment later when GSTR-2A became available, but was prevented from correcting its returns.
Key Issues
Whether the restriction on rectifying GSTR-3B in the same tax period as the error is ultra vires the CGST Act and arbitrary. Whether the impugned circular and rule prevent the correction of genuine errors leading to excess tax payment.
Sections Cited
Rule 61(5), Section 49(6), Section 54
AI-generated summary — verify with the full judgment below
W.P.(C) 6345/2018 * IN THE HIGH COURT OF DELHI AT NEW DELHI
Reserved on: 07.11.2019 Pronounced on: 05.05.2020
+ W.P.(C) 6345/2018, CM APPL. 45505/2019
BHARTI AIRTEL LIMITED
..... Petitioner Through: Mr. Tarun Gulati, Sr. Adv. with Mr.Sparsh Bhargava, Mr. Vipin Upadhyay, Mr.Shashi Mathews, Mr. Kamal Arya, Advs.
versus
UNION OF INDIA & ORS.
..... Respondents Through: Mr. Harpreet Singh, Sr. Standing counsel for R-2 to 4 with Ms. Suhani Mathur, Adv.
CORAM: HON’BLE MR.JUSTICE VIPIN SANGHI HON’BLE MR.JUSTICE SANJEEV NARULA
J U D G M E N T
Bharti Airtel Limited (hereinafter referred to as ‘Petitioner’) has preferred the present petition under Article 226 of the Constitution of India impugning inter alia, Rule 61 (5) of the GST Rules, Form GSTR- 3B and Circular No. 26/26/2017-GST (hereinafter referred to as the ‘impugned circular’) dated 29.12.2017 as ultra vires the provisions of Ce
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Delhi High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.