Petitioner | Jyoti Construction |
Respondent | Dy. CCT & GST |
Decision by | Orissa High Court |
Date of order or Judgement | 7- October, 2021 |
Citation no. | W.P. (C) Nos. 23508, 23511, 23513, 23514 and 23521 of 2021 2021 (10) GSTPanacea 14 HC Orissa |
Hon’ble Judge | Chief Justice S. Muralidhar |
Decision | In Favour of Revenue |
Electronic Credit Ledger Can’t be Utilized-Section 41(2) of the OGST Act limits the usage to which the Electronic Credit Ledger could be utilized, but it cannot be debited for making payment of pre-deposit at the time of filing of the appeal in terms of Section 107(6) of the OGST Act.
Electronic Credit Ledger Can’t be Utilized-Facts of the Case
Electronic Credit Ledger Can’t be Utilized-These writ petitions filled to challenge orders passed by the Additional Commissioner of Sales Tax (Appeal), Central Zone, Odisha.
Since the Petitioner herein had made payment of the pre-deposit being 10% of the disputed amount by debiting its electronic credit ledger (ECRL) and did not pay it from the electronic cash ledger (ECL) resulting in contravention of section 49(3) of the OGST Act.
Therefore, Rejecting the appeal filed by the Petitioner under section 107(1) OGST Act and holding that the appeals filed are defective.
Argument Before Court
Electronic Credit Ledger Can’t be Utilized-Petitioner’s Contention
The Petitioner submitted that under Section 49(4) of the OGST Act, the amount available in the ECRL could be used for making “any payment towards output tax” under the OGST Act.
The said contention was based on the scenario that since what in effect be the Petitioner was paying was a percentage of the output tax as defined under Section 2(82) of the OGST Act, the amount could well be paid by debiting the electronic credit ledger.
Electronic Credit Ledger Can’t be Utilized-Respondent’s Argument
Advocate appearing for the respondent refers to section 49(3) of the OGST Act which requires payment to be made from the ECL and section 49(4) which refers to the ECRL.
It is submitted that the pre-deposit cannot be equated to the output tax.
The proviso to section 41(2) of the OGST Act sets out the purposes for which the input tax credit (ITC) can be utilized. It can be utilized for payment of ‘self assessed output tax as per the return’.
In no other cases, ITC be utilized to discharge any liability.
Orissa High Court Held
Electronic Credit Ledger Can’t be Utilized-The Hon’ble Court On considering the facts held that “Output Tax”, as defined under Section 2(82) of the OGST Act could be equated to the pre-deposit required to be made in terms of Section 107(6) of the OGST Act.
Further, the proviso to Section 41(2) of the OGST Act limits the usage to which the ECRL could be utilised, but it cannot be debited for making payment of pre-deposit at the time of filing of the appeal in terms of Section 107(6) of the OGST Act.
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