Facts of the Case

Tvl Raj Computer, represented by its proprietor Monaram, sought a mandamus directing the Deputy State Tax Officer, Tirunelveli, to consider and pass orders on its rectification petition dated 19.11.2024, filed under Section 161 of the GST Act to rectify a purported error in the order dated 21.08.2024 passed under Section 73. The application had been filed offline within time, but CBIC Circular No. 237/31/2024-GST, dated 15.10.2024, had in the meantime clarified the procedure requiring rectification applications to be filed electronically through the GST portal, following specified navigation steps depending on the section under which the original order was passed.

Issues Involved

  1. Whether an offline rectification application filed in time under Section 161, before the electronic filing procedure was fully complied with, should still be considered on merits without reference to limitation.

Petitioner's Arguments

  • The rectification application had been filed offline on 19.11.2024, well within the time prescribed under Section 161, and the substantive grievance deserved to be heard on merits.

Respondent's Arguments

  • The Government Advocate drew attention to CBIC Circular No. 237/31/2024-GST, which prescribes the specific electronic navigation procedure for filing rectification applications against orders passed under Sections 73, 107 and 108 of the CGST Act.

Court Order / Findings

  • The Court noted that since the offline application had been filed in time, there could be no impediment to directing the respondent to consider it on merits.
  • The Court directed that, since procedural compliance under the Circular was still required, the petitioner must additionally file an online application within thirty days, upon which the respondent shall consider and dispose of the rectification plea on merits without reference to limitation under Section 161, given that the offline application had already been filed in time.
  • The writ petition was disposed of with these directions and no costs.

Important Clarification

  • Where a rectification application is filed offline within the statutory period before the taxpayer becomes aware of, or complies with, the electronic filing procedure prescribed by a CBIC circular, courts will protect the original filing date and direct the department to entertain a subsequently-filed online application without treating it as time-barred.
  • CBIC Circular No. 237/31/2024-GST lays down distinct portal navigation paths for rectification applications depending on whether the original order was passed under Section 73/74, Section 107, or Section 108 of the CGST Act.

Sections Involved

  • Section 161, CGST Act, 2017 – rectification of errors apparent on the face of the record.
  • Section 73, CGST Act, 2017 – underlying demand order sought to be rectified.
  • CBIC Circular No. 237/31/2024-GST – procedure for electronic filing of rectification applications.

Decision – In Favour of

The decision is in favour of the assessee, Raj Computer — the respondent was directed to consider the rectification application on merits without reference to limitation.

Case Details

Madurai Bench of Madras High Court – W.P.(MD) No. 21819 of 2025 – Coram: Hon'ble Mr. Justice C. Saravanan – Order dated 11.08.2025.

Link to Download the Order

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