ER-1 ERROR

[sonu shah]

Sir,

our company file ER-1 for the month of April-15.on line, but by mistake cenvat credit amount shown as a opening balance in ER-1 month of April-15, but closing balance of the march-15 was nil. now range superintendent ask us for issuing show cause notice.

please guide me.. with any case law..

[Ganeshan Kalyani]

If your mistake is genuine and if you have not taken excess Cenvat credit and if you are able to justify that there is no malafide intention of evading payment of tax and if the authority is satisfied on your explanation then the authority should not raise demand on you.

[YAGAY and SUN]

Typo Error or clerical mistakes can be either ignored or set aside on submission of documentary evidences/proof.

[KASTURI SETHI]

There is no substance in the logic of the jurisdictional Supdt. to issue SCN on lame issue. SCN is always issued on the basis of records and if your records are in order, nothing to worry. I support the views of both experts.

AI Summary

Clerical error in tax return: genuine mistakes supported by records may avoid demand or show-cause notices.
If an incorrect opening Cenvat credit entry in an ER-1 return is a genuine clerical mistake not resulting in excess credit or tax evasion, and the assesse can substantiate the mistake with records showing no mala fide intent, authorities should not raise a demand; SCNs should be issued only where record-based discrepancies support such action.