M/S Maa Tarini Mining Services,Keonjhar vs. CT And GST Officer,Barbil Circle

Facts

The Petitioner, M/s. Maa Tarini Mining Services, filed a writ petition challenging an order dated January 28, 2022, passed by the CT & GST Officer, Barbil Circle. This order pertained to the tax period of March 2019 and did not acknowledge a payment made by the Petitioner using the electronic credit ledger (ECL). The Petitioner contended that the CT & GST Officer was obligated to accept the tax payment via ECL, citing a circular dated July 6, 2022, issued by the GST Policy Wing, Central Board of Indirect Taxes and Customs. The Petitioner also indicated they had paid in excess of the demanded tax.

Held

The Court held that the CT & GST Officer was bound by the circular dated July 6, 2022, issued by the GST Policy Wing, Central Board of Indirect Taxes and Customs. This circular mandated the acceptance of tax payments made through the electronic credit ledger. Consequently, the order dated January 28, 2022, which failed to acknowledge the Petitioner's ECL payment for March 2019, was set aside. The Court reasoned that adherence to the issued circular was incumbent upon the tax authority. The matter was remanded to the CT & GST Officer, Barbil Circle, for a fresh order, directing the officer to consider the circular and any excess payment made by the Petitioner. The Court did not expressly leave any issue undecided.

Key Issues

1. Whether the CT & GST Officer was obligated to accept the Petitioner's tax payment made through the electronic credit ledger for the tax period March 2019, in light of the circular dated July 6, 2022, issued by the GST Policy Wing, Central Board of Indirect Taxes and Customs, Department of Revenue, Ministry of Finance, Government of India? Petitioner's Argument: The Petitioner argued that the aforementioned circular mandated the CT & GST Officer to accept tax payments made via the ECL. Revenue's Argument: The judgment records no specific argument from the Opposite Party (CT & GST Officer).