Writ allowed over GST data migration errors; department ordered to fix Portal, correct PART B and issue revised tax order

HC allowed the writ petition, finding discrepancies in data migration from the legacy system to the Integrated ACES-GST Application that affected the appellant's tax liabilities. The court set aside the impugned order and directed the department to create/rectify the Portal, correct the populated data (including PART B entries), and pass a revised order accepting the stance of the appellant/assessee. The matter was remitted for compliance and issuance of the revised order.

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ISSUES:

• Whether a writ petition challenging a tax demand order is maintainable when there is a discrepancy in data migration between legacy and new GST systems.
• Whether the department is obligated to rectify data discrepancies in the GST portal reflecting service tax returns.
• Whether the impugned tax demand order should be set aside due to errors in data migration and incorrect reflection of returns.
• Whether coercive action can be initiated against the appellant pending rectification of data discrepancies.

RULINGS / HOLDINGS:

• The writ petition was held to be maintainable as the issue involves "error wherein PART B of the revised return was not duly populated into the domain of the Department," which cannot be resolved by the adjudicating authority or tribunal.
• The department confirmed that "data pertaining to the revised return have not migrated completely to the new integrated ACES-GST Application system," and therefore the original return data is reflected, necessitating rectification.
• The impugned order was set aside, and the authorities were directed to "make the necessary correction in the Portal and issue a revised order accepting the stand taken by the appellant/assessee."
• No coercive action shall be initiated against the appellant for enforcing the demand crystallized in the original order dated 16.11.2023 pending rectification.

RATIONALE:

• The Court applied principles relating to the maintainability of writ petitions in tax matters where factual data discrepancies arise due to system migration errors beyond the adjudicating authority's purview.
• The legal framework involves the Central Board of Indirect Taxes and Customs' responsibility, through the Directorate General of Systems & Data Management, to ensure accurate data migration and correction in the GST portal.
• The Court emphasized that the department must rectify the mistake and pass a revised order rather than quashing the proceedings outright.
• The matter was remitted to the department solely for compliance with the direction to correct data and issue a revised order, not for fresh proceedings, indicating a doctrinal approach to administrative rectification over litigation.

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