TaxTMI 
TaxTMI 
Order passed under Sec.73 without penalty and later rectificed u/s.161
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....rder passed under Sec.73 without penalty and later rectificed u/s.161 <br> Query (Issue) Started By: - Raam Srinivasan Swaminathan Kalpathi Dated:- 16-9-2026 Goods and Services Tax - GST <br> Got 1 Replies <br> GST<br> <br> 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 discrepan....
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....cies 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 thoug....
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....ht 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 --Reply By: KALLESHAMURTHY MURTHY K.N. The Reply: Sir, Section 161 can only be invoked to correct "errors apparent on the face of the record". Opening the case intending to impose ....
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....a penalty cannot be called rectification. Penalty can only be levied under the relevant provisions of Sec. 73 or 74 or 74A by issuing a Show Cause Notice. Without issuing an SCN, imposing a Penalty is nothing but a misapplication of power. Since the original order formally dropped all discrepancies, the tax authority cannot alter the core conclusion of that order under the guise of "rectification"....
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