SUPREME COURT: Minor Clerical Errors Cannot Deny ITC After Time Limit

THE SUPREME COURT OF INDIA

The Union of India & Ors.
Versus
Brij Systems Ltd & Ors.

SLP (C) Diary No. 6334/2025
Date of Judgment: 24-03-2025

Brief Facts:

Relevant Section

Sections 37(3) and 39(9) of the CGST Act, 2017

The Supreme Court found no merit in the petition, especially since a similar matter had already been dismissed in CBIC v. Aberdare Technologies Pvt. Ltd. However, noting recurring issues where minor clerical/arithmetical mistakes led to denial of ITC particularly after expiry of the time limits under Sections 37(3) and 39(9) of the CGST Act—the Court issued notice to the Central Board of Indirect Taxes and Customs (CBIC) and appointed Senior Advocate Arvind P. Datar as Amicus Curiae to assist in resolving the issue.                               

Para as per Judgment:- We do not find any merit in the present special leave petition, as we have already dismissed SLP (C) No. 7903/2025, titled “Central Board of Indirect Taxes and Customs v. M/s Aberdare Technologies Private Limited and Ors.”.

However, it appears that on account of mistakes or errors getting noticed on the input tax credit, and the input tax credit being subsequently denied to the purchaser, the Revenue has been taking the
stand that rectification is not possible after expiry of the period prescribed under Sections 37(3) and 39(9) of the Central Goods and Services Tax Act, 2017. In order to resolve the issue, we deem it appropriate to issue notice to the Central Board of Indirect Taxes and Customs.

It may be noticed that, in all these cases, it is accepted by the Revenue that there is a clerical/arithmetical mistake which is not being permitted to be corrected. Invariably, such mistakes come to the notice of the seller, who has to fill up the online form(s), etc., after the input tax credit is denied to the purchaser(s).

We appoint Mr. Arvind P. Datar, learned Senior Advocate, as an Amicus Curiae to assist this Court in the present case.