Shivam Electric Coporation vs. The UOI And Others
Held
The Court held that the prayer to allow the petitioner to file a manual return deserves to be acceded to. The reasoning was based on the petitioner's submission that filing a manual return would not automatically absolve them from meeting the demand raised by the order dated 19.02.2025, and that the said order would remain intact, subject to any further order passed by a competent authority. The Court directed the respondents to allow the petitioner to file the manual return as prayed, but clarified that this would have no automatic impact on the order dated 19.02.2025. The Court did not expressly leave any issue undecided, but the ultimate rectification of the ITC claim and its impact on the confirmed demand would be subject to further proceedings before the competent authority.
Facts
The petitioner, Shivam Electric Corporation, filed a writ petition seeking to file a manual GSTR-3B return for the quarter ending March 2021 to claim an Input Tax Credit (ITC) of Rs. 10,54,098/-. The petitioner stated that an error during FY 2020-21 prevented them from claiming this ITC. The error was discovered in 2022 while filing the annual return GSTR-9 for FY 2020-21. The petitioner received a Summary of Show Cause Notice dated 23.11.2024, Form GST DRC-01, and filed a reply on 07.01.2025. The respondents argued that the petitioner knew about the mistake in 2022 but did not act promptly, and an order dated 19.02.2025 confirmed a demand of Rs. 11,21,351/- for short payment of GST due to a mismatch between GSTR-3B and GSTR-1.
Key Issues
1. Whether the Court should direct the respondents to accept the manual filing of GSTR-3B for the quarter ending March 2021 with an additional claim of ITC amounting to Rs. 10,54,098/-, considering the absence of a specific mechanism under Section 16 of the CGST Act for manual returns and the petitioner's delay in rectifying the error. Petitioner's arguments: Allowing manual filing would not impact the revenue of the State and would not cause any loss. The petitioner believed that filing the annual return GSTR-9 with the corrected ITC would automatically rectify the records. The order confirming the demand of Rs. 11,21,351/- would remain intact unless modified by a competent authority. Respondents' arguments: The petitioner was aware of the mistake in 2022 but failed to take timely action. There is no provision under Section 16 of the CGST Act for filing manual returns. The concerned authority has already passed an order dated 19.02.2025 confirming the demand against the petitioner.
Sections Cited
Section 16
AI-generated summary — verify with the full judgment below
2026:HHC:806 IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA CWP No.8053 of 2025 Date of decision: 01.01.2026 Shivam Electric Corporation.
...Petitioner. Versus Union of India & Ors.
…Respondents. Coram Hon’ble Mr. Justice Vivek Singh Thakur, Judge. Hon’ble Mr. Justice Romesh Verma, Judge. Whether approved for reporting?1 For the petitioner : Mr. Joy Kumar and Mr. Ajmer Singh, Advocates.
For the respondent : Mr. Virbahadur Verma and Mr. Mukul Sharma, Advocates, for respondent No.1. : Mr. Vijay K. Arora, Senior Advocate with Ms. Aastha Kohli and Mr. Hitansh Raj, Advocates, for respondents No.2 & 4. Vivek Singh Thakur, Judge (Oral)
Petitioner, invoking jurisdiction of this Court under Article 226 of Constitution of India, has approached this Court seeking following substantive relief:- “1. Issue an appropriate or prerogative writ, order or direction directing the Respondents to accept the manual filing of GSTR-3B for the quarter ending March 2021 with the additional claim of ITC amounting to Rs.10,54,098/-.”
1Whether the reporters of the local papers may be allowed
The judgment continues below.
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Reproduced from the public record of the Himachal Pradesh High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.