Chartered Accountant
Bookmark and Share
click here to subscribe our newsletter
 
 
Corporate News *   CBIC issues draft rules for Customs valuation *  Top Headlines: Threshold for Benami deals, green bond investors, and more *  Govt aims 1-hour clearance for goods at all ports *  Exporters Allowed To Use RoDTEP, RoSCTL Scrips To Pay Customs Duty, Transfer Them; Rules Amended *  Millions of labourers to be affected by brick producers’ strike over hike in GST, coal rates *  Inauguration of ‘kendriya GST parisar’ *  Transporter can seek Release of Conveyance alone, not Goods under GST Act: Madras HC *  GST: Quoting of DIN Mandatory for Responding to Notice, Govt Modifies Portal *  Firms can soon file claims for GST credits of ?400 cr *  CBIC issues modalities for filing transitional credit under GST. *  Mumbai: Man creates 36 fake GST firms, arrested for input tax credit fraud of Rs 23 cr *  Report to restructure Commerce Ministry under study; idea is to set up trade promotion body: Goyal *  Firms can soon file claims for GST credits of ?400 cr *  Gambling Alert! Govt May Levy Up To 28% GST; UP, Bengal Back Move *  EPFO backs raising retirement age to ease pressure on pension funds *  India Moving Up Power Scale, Set to Become Third Largest Economy By 2030 *  Airfares Get Expensive: What Changes for Flyers From Today? *  IRCTC Latest News: Passengers to Pay More For Cancelling Confirmed Rail Tickets Soon. *  IBC prevails over Customs Act, says Supreme Court. *  As GST enters sixth year, a time for evaluation and reassessment *  There’s GST on daily essentials as Centre needs money to buy MLAs: Arvind Kejriwal *  Now, GST on cancellation of confirmed train tickets, hotel bookings *  GST kitty for top States could rise 20% in FY23, says Crisil *  French customs officials seize another cargo vessel over Russia sanctions *  TradeLens builds on Asia momentum with Pakistan Customs deal *  Hike tax on tobacco, reduce affordability & increase revenue: Civil society organizations to GST council *  Bihar: ?10 crore tax evasion on tobacco products detected in raids *  Centre failed on GST, COVID; would it be anti-national? Rajan on Infosys row *  Service Tax not Chargeable on Income Tax TDS portion paid by recipient: CESTAT grants relief to TVS *  Foreign portfolio investors make net investment of Rs 7575cr in Sep so far
Subject News *  Run-up to Budget: Monetary threshold for GST offences may rise to Rs 25 cr *   GST (Tax) E-invoice Must For Businesses With Over Rs 5 Crore Annual Turnover *   Both Central GST and excise duty can be imposed on tobacco, rules Karnataka high court *   CBIC Issues Clarification On Extended Timelines For GST Compliance *   CBIC Issues Clarification On Extended Timelines For GST Compliance *  Budget 2023- 9.6 crore gas connections *  GST: Tamil Nadu Issues Instructions for Assessment and Adjudication Proceedings *  GST: CBIC Extends Last Date for filing of ITC *  GST collection in September surpasses Rs 1.4 lakh crore for straight seventh time *  Dollar smuggling case: Customs chargesheet names M Sivasankar as key conspirator. *  Hike in GST rates fuels inflation *  Assam: CBI arrests GST commissioner in Guwahati *  GST fraud worth ?824cr by 15 insurance Cos detected *  India proposes 15% customs duties on 22 items imported from UK *  Decriminalising certain offences under GST on cards *  Surge in GST collections more due to higher inflation: India Ratings *  MNRE Notifies BCD and Hike in GST Rates as ‘Change in Law’ Events But With a Condition | Mercom India *   Solar projects awarded before customs duty change allowed cost pass-through *  Rajasthan High Court Dismisses Writ Petitions Challenging Levy Of GST On Royalty *   GST revenue in September likely at Rs 1.45 lakh crore *  Govt working on decriminalising certain offences under GST, lower compounding charge *  Building an institution like GST Council takes time, trashing is easy: Sitharaman *  GST collections in Sept may touch ?1.5 lakh crore *  KTR asks Centre to withdraw GST on handlooms *  After Gameskraft, More Online Gaming Startups To Receive GST Tax Claims *  Madras HC: AAR Application Filed Under VAT Does Not Survive After GST Enactment *  Threshold for criminal offences under GST law may be raised *  Bengaluru: Gaming company faces biggest GST notice of Rs 21,000 crore *  CBIC clarifies Classification of Cranes for GST, Customs Duty *  Customs seize gold hidden in bicycle in Kerala airport  

Comments

Print   |    |  Comment

GST update No 307 on limitation for refund of tax paid under wrong head

GST update No 307 on limitation for refund of tax paid under wrong head
It is well known fact that getting refund sanctioned from the Government is a matter of grave concern for the taxpayers since the departmental authorities are reluctant to sanction the refunds. It is observed that the assessees have to knock the doors of court in order to get their refund claims. Recently, one such case was reported before Andhra Pradesh High Court in the case of AXIS BANK LIMITED V/S UNION OF INDIA. The decision imparted in this case is subject matter of discussion of our present update.
The petitioner is the third largest bank and provides an entire spectrum of the financial services. The bank is registered in Andhra Pradesh as well as in Telangana with two different GSTIN. For the ease of determining the location of supply (LOS) and place of supply (POS), the branches were tagged to the respective states from where the services are provided. However, during this process, few business premises located in Telangana State were erroneously tagged as Andhra Pradesh and hence, LOS was also wrongly identified. However, POS was correctly identified as Telangana and IGST was paid instead of CGST and SGST. This incorrect mapping was identified by the bank in year 2019 and to rectify the same, the petitioner suo-motto deposited relevant CGST and SGST and reported the same in DRC-03. Further, in respect of IGST paid, refund was demanded. However, a show cause notice was issued to the petitioner wherein the refund application was rejected being time barred and details of excess tax payment were not reflected as per Section 54 of CGST Act, 2017. The aggrieved petitioner filed an appeal before Commissioner (Appeals) which was rejected. Therefore, this writ petition is filed due to non-constitution of GST Tribunal.
The Counsel of petitioner relied on the Circular dated 25.09.2021and statedthat the authorities erred in rejecting the claim as time barred.
The Counsel of respondent argued that the refund claim should be filed as per the procedure prescribed under the provisions of the Act. Since the impugned claim came to be made beyond the period of limitation i.e. 2 years, the refund is rightly rejected. Further, it was argued that all the documents required for making claim were incorrect. It was argued that except making bald statements of GST payments, no documentary evidence existed. Therefore, it was argued that there is no merit in the present case and hence, the same is liable to be dismissed.
The Court stated that the issue under consideration is whether the application made by the petitioner is barred by limitation and whether all the documents as required are filed along with the said refund application? Refence in this case was drawn to Circular dated 25.09.2021 regarding refund of tax. Further the word “subsequently held” was interpreted. It was stated that from Circular No. 162/18/2021-GST and Column No.3 of 4.3, if tax is paid in correct head before issuance of Notification No. 35/2021-Central Tax dated 24.09.2021, the last date of filing of refund would be 23.09.23 (2 years from date of notification). Further, in case IGST is paid on same transaction on 10.11.2022 i.e. after issuance of notification, the last date of filing would be 09.11.2024. Placing reliance on the same, the petitioner seeks remand of the matter. In the present case, the order was passed as on 23.11.2020 and circular was issued as on 25.09.2021 regarding clarification of date for claiming refund. Furthermore, the authority who passed the impugned order could not consider the Circular since the same was not issued by the date of impugned order. Since in the present case, the refund application was not coupled with adequate documents, the same is remanded back in light of the above stated Circular.
The above favourable decision is a silver lining in the clouds for the trade and industry. The moot question still unanswered in the minds of taxpayers is to what extent will this tug of war continue between the taxpayers and tax officers regarding denial of refund on the grounds of limitation when there is clear cut clarification issued by the CBIC. It is high time that the pro-revenuepractices should be curbed at the earliest possible by the revenue authorities as it will continue to increase the miseries of the government as well as the taxpayers.
Department News


Query

 
PRADEEP JAIN, F.C.A.

Head Office : -

Address :
"SUGYAN", H - 29, SHASTRI NAGAR, JODHPUR (RAJ.) - 342003

Phone No. :
0291 - 2439496, 0291 - 3258496

Mobile No. :
09314722236

Fax No. :0291 - 2439496


Branch Office : -

Address:
1008, 10th FLOOR, SUKH SAGAR COMPLEX,
NEAR FORTUNE LANDMARK HOTEL, USMANPURA,
ASHRAM ROAD, AHMEDABAD-380013

Phone No. :
079-32999496, 27560043

Mobile No. :
093777659496, 09377649496

E-mail :pradeep@capradeepjain.com