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SC rejects Bharti Airtel's plea of Rs 923 cr refund in GST returns
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SME Times News Bureau | 29 Oct, 2021
In a major setback to Sunil Bharti-led Bharti Airtel, the Supreme Court
on Thursday declined to entertain the telecom company's claim seeking
refund of Rs 923 crore, by rectifying its GST returns for July to
September 2017.
A bench comprising justices A.M. Khanwilkar and
Dinesh Maheshwari said: "the direction issued by the High Court being in
the nature of issuing writ of mandamus to allow the writ petitioner to
rectify Form GSTR-3B for the period from July to September 2017, in the
teeth of express statutory dispensation, cannot be sustained".
The
top court allowed the Centre's appeal and set aside the Delhi High
Court order, passed on May 5, 2020, which allowed Airtel to rectify Form
GSTR-3B for the period.
The bench added, "the law permits
rectification of errors and omissions only at the initial stages of
Forms GSTR-A1 and GSTR-A3, but in the specified manner. It is a
different dispensation provided than the one in pre GST period, which
did not have the provision of auto populated records and entries".
The
bench said an assessee cannot be permitted to unilaterally carry out
rectification of his returns submitted electronically in Form GSTR-A3B,
which inevitably would affect the obligations and liabilities of other
stakeholders, because of the cascading effect in their electronic
records. "There would be complete uncertainty and no finality could ever
be attached to the self assessment return filed electronically," added
the bench.
The bench also upheld the circular issued by the
commissioner (GST) which had restricted the rectification of Form
GSTR-A3B in respect of the period wherein error had occurred.
The
top court agreed with Centre's contention that any indulgence shown
contrary to the statutory mandate would not only be an illegality but
will lead to chaotic situation and collapse of tax administration of
Union, states, and union territories. The tax authorities denied any
refund alleging that Airtel had under-reported input tax credit during
the period. Airtel had argued it had paid excess tax of Rs 923 crore on
inputs based on estimates since the GSTR-2A form was not operational
during the period, wherein the error occurred.
The top court said
the factum of non-operability of Form GSTR-A2A, therefore, is a flimsy
plea taken by Airtel. "Indeed, if the stated form was operational, the
same would have come handy to the writ petitioner for doing self
assessment regarding eligibility of ITC and availing thereof", it noted.
The
high court had directed that on filing of the rectified Form GSTR-3B,
they shall, within a period of two weeks, verify the claim set forth by
Airtel and give effect to the same once verified.
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