GST demand rectification based on prior payment proof allowed for verification before recovery

A GST demand for alleged short payment, interest and penalty was challenged on the basis that a payment receipt prima facie showed the amount had already been remitted earlier, making verification necessary to avoid double recovery. The petitioner was allowed to file a rectification application in the prescribed form with supporting proof of prior payment, and the Proper Officer was directed to examine the request in accordance with law within a reasonable time.

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Issues: Whether the petitioner was entitled to an opportunity to place proof of prior tax payment and seek rectification before recovery of the alleged tax demand.

Analysis: The dispute centered on a demand raised under the GST adjudication proceedings for alleged short payment of tax and related interest and penalty. A payment receipt showed prima facie that the amount said to be unpaid had already been remitted earlier, creating a need for verification so that the same amount was not effectively demanded twice. In these circumstances, the petitioner was granted an opportunity to file a rectification application in the prescribed form with supporting proof of payment, and the Proper Officer was directed to examine it in accordance with law within a reasonable time.

Conclusion: The petitioner was permitted to pursue rectification based on prior payment evidence, and the respondent was required to consider that request in accordance with law.

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