section 140 of CGST
Case Title | Asst. Commissioner of GST and Excise Vs M/s Ganges International Private Limited |
Court | Madras High Court |
Honorable Judges | Juatice R. Mahadevan and Justice Mohammad Shafiq |
Citation | 2022 (8) GSTPanacea 159 HC Madras W.P.A. 1648 of 2022 and W.P.A. 11262 of 2022 |
Judgement Date | 17-August-2022 |
Council for Petitioner | Hema Murlikrishnan |
Council for UOI | |
Council for State | Ms Arthy |
The Madras High Court bench of Justice R. Mahadevan and Mohammad Shafiq has held that chance of making an application of refund under section 140(1), which was subsequently accrued in the account of assessee cannot be denied
FACTS OF THE CASE
The respondent assessee is engaged in manufacturing of GI tower components falling under chapter 73 of Central Tariff Act 1985. During the business the assessee purchased know-how from foreign and paid the royalty for the period April 2016 to June 2017 but due service charge on RCM basis was not paid. Later on the same was paid with interest dated 2nd May 2018.
The appellant submits that after GST introduction in July 2017 the old CENVAT rules was repealed by CENVAT rule 2017 dated 30th June 2017 notification but various transitional provisions were enacted vide section 140 to 142 of CGST Act 2017 to credit availiment and for the same 90 days period was given by government but the said provision is not applicable in this case as assesee had paid the service tax liability during the period April 2016 to June 2017 on 2nd May 2018 and despite the assessee claimed for the refund of Service Tax paid and the same was rejected by the appellant.
Assessee challenged the same and filed writ 528 of 2019 which was ordered by judge dated 22nd Feb 2022 by setting aside the rejection of refund order by appellant. After considering the case of assessee, the learned judge was of the view that merely because of transition provisions has come into effect from 1st July 2017, the chance of making an application of refund under section 140(1), which was subsequently accrued in the account of assessee cannot be denied
section 140 of CGST
COURT HELD
After extracting the pervious writ order by learned judge it was seen that what is impugned here is only the order of remand passed by the learned judge and there is no reqirement to the set aside the same entirely but inclined to modify the order to some extent by directing the appellant to consider the application of assessee under section 142(3) of CGST Act, 2017 on the merits and after affording him and hearing opportunity within 6 weeks from this order.
section 140 of CGST
ANALYSIS OF THE JUDGEMENT
Merely because transitional provisions came into effect from July 2017, the refund application of earlier tax regime credit was not entitled to be rejected by the authority out-rightly without affording him opportunity of being heard.
Download pdf:
Asst. Commissioner of GST and Excise
For Reference visit: