Rectification order passed u/s 65 KGST Act

[RAGHAVENDRA K]

Can i apply under section 161 of the CGST for the rectification of the order passed under section 65 of the CGST/KGST act where issue involved is plastic scape sales is proposed to be taxed at 18% in the order. whereas no objection is filed on this ground against the audit observation proposing to tax plastic scrape sales at 18%. later on i come to know that the rate of tax is 5% on plastic scrape sales

what could be the other remedies i left with. any one can elaborate on this point

thanks in advane

[ABHISHEK TRIPATHI]

Dear Sir,

Under 161 rectification may be brought for any document. The word they have used is “other documents” which squarely covers the audit report.

You may use 161 in your case.

It’s a better move, otherwise, the department may initiate 73/74.

[KASTURI SETHI]

SH.RAGHAVENDRA K JI,

Are you 100 % sure about rate of tax in respect of plastic scrap ? Are you sure about classification ? Is plastic scrap generated during process of manufacture or trading ?

As per procedure, prior to issuance of the Audit Report the para is examined thoroughly, discussed with the Officers who detect short levy/non-levy and if satisfied, it is approved by the Committee headed by the Commissioner.

So be doubly sure before resorting to Section 161 of CGST Act. It appears to me a classification dispute.

[RAGHAVENDRA K]

Respected Sir,

Can i file the Appeal under section 107 & also file application under 161 for rectification of mistake. is recourse to both section possible simultaneously ?

Can department raise other grounds or issue which do not form part of original order passed under section 65 in the appellate proceedings before the appellate commissioner ?

[KASTURI SETHI]

SH.RAGHAVENDRA K Ji,

Pl. refer to your queries at serial no.3 above.

1. NO

2. You are aggrieved party and not the department. Whatever you raise points, the department will counteract the same.

[Ganeshan Kalyani]

Classification of the goods for rate determination is a toughest task to do.

AI Summary

Rectification under section 161 corrects tax-rate classification errors; simultaneous appeal under section 107 is not permitted. Rectification remedy may be invoked to correct a tax-rate classification error in an audit-derived order because the rectification provision covers 'other documents' including the audit report; taxpayers must verify classification and applicable rate before seeking rectification. Pursuing an appeal under the appellate provision simultaneously with rectification is not appropriate; the aggrieved party should raise issues in appeal and the department will counter those points rather than typically introducing new grounds beyond the original order.