Department Of Goods And Service Tax vs. Wellwisher Properties

Facts

The Petitioner, Wellwisher Properties, filed Writ Petition No. 11112 of 2022 seeking a direction for the Khopoli Municipal Council (Respondent No. 1) to deposit Rs. 38,94,868/- towards Goods and Services Tax (GST) to the GST Authorities. The Petitioner contended that the Municipal Council received the GST amount but failed to deposit it, preventing the Petitioner from availing input tax credit. The Court, in its order dated July 27, 2023, noted that the Municipal Council had deposited Rs. 38,94,868/- in the Court by demand draft. The remaining issue was the deposit of this amount with the GST Authorities. The Applicant (Original Respondent No. 2, Department of Goods and Service Tax) filed Interim Application No. 7439 of 2025 seeking directions for the transfer of this amount to the Petitioner for onward deposit with the GST Authorities.

Held

The Court held that the prayer of the Applicant (Department of Goods and Service Tax) to direct the Registry to transfer the amount of Rs. 38,94,868/- to the account of the Petitioner, Wellwisher Properties, and for the Petitioner to subsequently deposit the said amount with the GST Authorities through Form GST DRC-03, was prima facie satisfied. The Court reasoned that this procedure would facilitate the deposit of the disputed GST amount. The Court directed the Registry to transfer the sum of Rs. 38,94,868/- to the account of the Petitioner, Wellwisher Properties. Upon receipt of the amount, the Petitioner was directed to deposit the said sum with the GST Authorities. The Interim Application was disposed of in these terms.

Key Issues

1. Whether the Court should direct the Registry to transfer the amount of Rs. 38,94,868/- deposited in the Court to the Petitioner, who would then deposit it with the GST Authorities via Form GST DRC-03. Petitioner's Argument: The Petitioner argued that the Khopoli Municipal Council received GST amounts but failed to deposit them with the GST authorities, hindering the Petitioner's ability to claim input tax credit. Representations made by the Petitioner were not considered. The Petitioner sought a direction for the Municipal Council to deposit the amount. Revenue/State's Argument: The Applicant (Department of Goods and Service Tax) sought directions for the transfer of the amount deposited in the Court to the Petitioner for deposit with the GST authorities. They encountered difficulties in getting the amount transferred to a designated bank account, as GST collection is primarily through challans on the common portal. They relied on the previous order of the Court dated July 27, 2023, which directed the deposit of the amount with GST Authorities in even proportion as per CGST and MGST Acts.