Order passed under Sec.73 without penalty and later rectificed u/s.161

16 Sep 2026

2 Replies

364 Views

Asked by

Raam Srinivasan Swaminathan Kalpathi

Rectification of apparent errors cannot ordinarily become a review imposing penalty after adjudication drops discrepancies.
Section 161 rectification is treated as confined to an error apparent on the face of the record and not as authority to review a concluded GST adjudication. Where the original order dropped discrepancies without a tax or penalty determination, later imposition requires identification of the specific apparent error and its link to the statutory penalty. The original order, rectification order, notice, replies, hearing record, and payment chronology are material to determine whether an omitted penalty was consequential or whether fresh adjudication occurred without adequate penalty notice. (AI Summary)

Brief facts are:

Client was issued ASMT-10 on 02-Mar-26 and reply was filed on 15-Apr-26 . Not satisfied Tamil Nadu GST department issued DRC-01 producing the ASMT-10 discrepancies verbatim on 05-May-26 again and the same reply was uploaded on 23-May-26.

Just before date of personal hearing on 16-Aug-26 we noticed certain short-payment and remitted the same and GST department passed orders dropping all discrepancies.

On 14-Sep-26 department issued Sec.161 Order imposing penalty u/s. 73 of CGST Rs.10,000/-, SGST-10,000/- and IGST-20,000/-.

This is clearly an after thought and not on account of a mistake apparent on record. My query do we have a arguable case here? I request experts to give me their opinion and suggestions on the strategy to be adopted by the client. Profuse thanks

Contact Us At :

FAQs :

Most Asked Video Tutorials :

Submit Feedback/Suggestion :

Delete Reply

Delete Issue

Discussion Forum

Order passed under Sec.73 without penalty and later rectificed u/s.161

Contact Us At :

FAQs :

Most Asked Video Tutorials :

Submit Feedback/Suggestion :

Print Options

Delete Reply

Delete Issue

Discussion Forum

Order passed under Sec.73 without penalty and later rectificed u/s.161