Cause title — parties, addresses and appearances
APHC010294682024
IN THE HIGH COURT OF ANDHRA PRADESH
AT AMARAVATI
(Special Original Jurisdiction)
[3529]
WEDNESDAY,THE SEVENTEENTH DAY OF SEPTEMBER
TWO THOUSAND AND TWENTY FIVE
PRESENT
THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO
THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR
WRIT PETITION NO: 15130/2024
Between:
1. M/S. KRISHNA SAI GRANITES INDIA PVT LTD, SR.NO.325/1
A2/1B2/2A/2C, P.GUDIPADU(V), S.N.PADU(MD), PRAKASAM DIST.
REP BY ITS MANAGING DIRECTOR SRI. SIDDA.HANUMANTHA
RAO
...PETITIONER
AND
1. THE DEPUTY COMMISSIONER OF CENTRAL TAX, NELLORE CGST
DIVISION, D.NO.24-7-48, MSR LAYOUT, MINI BYPASS ROAD,
SPSR NELLORE DIST.
2. THE PRINCIPAL COMMISSIONER OF CENTRAL TAX, GST BHAVAN-
C.R.BUILDINGS, KANNAVARI THOTA-GUNTUR.
3. UNION OF INDIA, REP BY ITS PRINCIPAL SECRETARY, MINISTRY
OF FINANCE, 3RD FLOOR, JEEVAN DEEP BUILDING, SANSAD
MARG-NEW DELHI-110001.
4. THE SENIOR AUDIT OFFICERS/SSCA REFUNDS, O/O THE
DIRECTOR GENERAL OF AUDIT (CENTRAL) AP AND TELANGANA,
HYDERABAD.
...RESPONDENT(S):
Petition under Article 226 of the Constitution of India praying that in the
circumstances stated in the affidavit filed therewith, the High Court may be
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RRR,J & TCDS, J
W.P.No.15130_2024
pleased to issue any order or direction more particularly one in the nature of
Writ of Mandamus or any other appropriate writ or order or direction declaring
the Proceedings of the 1ST respondent, passed under Rule 142(5) R/w
Sec.74(1) of the COST Act in OlO No. NLR-AC-06- 2023-24-Refunds (GST)
dt. 25.03.2024 (Annexure P-1) served on 30.03.2024 for recovery of the
Excess refund of IGST sanctioned U/s 54(3) of the CGST Act in Form RFD-
06/95/2019-20 Dt. 19.09.2019 in pursuance refund claim for the tax period
January 2019 to March -2019 in ARN No. AA371119020066H Dt.
03.06.2019(Annexure P-2) though the alleged erroneous demand was paid in
Form DRC-03Dt. 08.04.2021 (Annexure P-3) and also failed to re-credit the
same, is against to Rule 86(2)(4) (4-A) AND 4(B) R/w Sec 49(4) and Rule 142
(2) R/w Sec 73(5) of the CGST Act, and also contrary to the instructions of
the CBIC, GST policy wing Circular No. 59/33/2018-GST ANDCircular No.
125/44/2019-GST Dt. 18.11.2019, is in violation of principles of natural
justice, arbitrary, without jurisdiction, contrary to the provisions of the Central
Goods and Service Tax Act 2017, (herein after referred to as the Act)Hence,
the orders of the 1st respondent is liable to be set aside.
IA NO: 1 OF 2024
Petition under Section 151 CPC praying that in the circumstances stated
in the affidavit filed in support of the petition, the High Court may be pleased to
grant stay of all further proceedings, pursuant to the Proceedings of the 1ST
Respondent, with reference NO.ZD370424029156G in Form GST DRC 07
Dated 30.04.2024 (Annexure P-1) passed U/Sec. 74(1) of the CGST Act,
pending disposal of the above writ petition, as otherwise, the petitioner would
be put to severe loss and hardship.
IA NO: 2 OF 2024
Petition under Section 151 CPC praying that in the circumstances stated
in the affidavit filed in support of the petition, the High Court may be pleased to
direct the 1st respondent to re-credit to the electronic credit ledger by an
order made in FORM GST PMT 03 prescribed at Rule 86(4) and Rule 93(2)
of COST Rules 2017 for the payment made in FORM DRC-03 dated
08.04.2021 (ARN; AD370421002109L) from the electronic credit ledger for
Rs. 2,66,058/- (Annexure-P3), pending disposal of the above writ petition, as
otherwise, the petitioner would be put to severe loss and hardship.
IA NO: 3 OF 2024
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RRR,J & TCDS, J
W.P.No.15130_2024
Petition under Section 151 CPC praying that in the circumstances stated
in the affidavit filed in support of the petition, the High Court may be pleased to
direct the 1st respondent to re-credit to the electronic credit ledger by an
order made in FORM GST PMT- 03 A prescribed at Rule 86(4B) and Rule
93(2) of CGST Rules 2017 for the payment of erroneous refund of
Rs.2,66.058/- made in FORM DRC-03 dated 17.01.2024 (Annexure- P8)
along with of interest of Rs.2,09,672/- in FORM GST DRC-03 dated
20.01.2024 (Annexure-P9) pending disposal of the above writ petition, as
otherwise, the petitioner would be put to severe loss and hardship
IA NO: 4 OF 2024
Petition under Section 151 CPC praying that in the circumstances stated
in the affidavit filed in support of the petition, the High Court may be pleased to
the Hon’ble Court may be pleased to grant leave to the respondent to file the
counter affidavit and pass
IA NO: 5 OF 2024
Petition under Section 151 CPC praying that in the circumstances stated
in the affidavit filed in support of the petition, the High Court may be pleased to
vacate the interim order Dt. 18.07.2024 in I.A. No. 1, 2 & 3 of 2024 in W.P.
No. 15130 of 2024, and pass such other order or orders as this Hon’ble Court
may be pleased deem fit and proper in the facts and circumstances of the
case
Counsel for the Petitioner:
1. K ADI SIVA VARA PRASAD
Counsel for the Respondent(S):
1. Y N VIVEKANANDA
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W.P.No.15130_2024
The Court made the following ORDER:
(per Hon’ble Sri Justice R. Raghunandan Rao)
The petitioner, which is in the business of export of Granite products, is a registered person under the provisions of GST Act. The petitioner filed refund claim of IGST under Section 54(3) of the CGST Act, 2017 for the period January, 2019 to March, 2019, by way of an application dated 03.06.2019. This refund application was allowed on 19.09.2019 and an amount of Rs.72,23,854/- was sanctioned and released.
2.Thereafter, the 1st respondent issued a show-cause notice contending that an amount of Rs.2,66,058/- had been refunded in excess of the petitioner eligibility of the petitioner. Upon receipt of this show-cause notice, dated 20.09.2023, the petitioner is said to have adjusted the said amount by way of debiting the same against the Electronic Credit Ledger of the petitioner. However, the 1st respondent issued proceedings, dated 25.03.2024, which was served on the petitioner on 30.04.2024, for recovery of the excess amount sanctioned in the refund order, dated 19.09.2019. 3. The petitioner being aggrieved by this order has challenged the same before this Court by way of this writ petition.
4.The impugned order, dated 25.03.2024, while confirming the excess refund to be Rs.2,66,058/- had directed the petitioner to refund the same by W.P.No.15130_2024
way of cash and rejected the request of the petitioner for adjusting the same by debiting to Electronic Credit Ledge of the petitioner.
5.Sri K A S V Prasad, the learned counsel for the petitioner, assailed the said order on two grounds. Firstly, the petitioner was entitled to adjust the excess refund, by way of debiting his Electronic Credit Ledger under Rule 86 of the CGST Rules, 2017. Secondly, the impugned order of the 1st respondent ,dated 30.04.2024, was beyond the limitation under Section 73 (10) of the GST Act.
Section 73(10) reads as follows: “Section 73(10) The proper officer shall issue the order under sub-section (9)within three years from the due date for furnishing of annual return for the financial year to which the tax not paid or short paid or input tax credit wrongly availed or utilized relates to or within three years from the date of erroneous refund”.
6.Under this provision, any order directing the adjustment of arrears from the date of erroneous refund has to be made within three (3) years from the date of such erroneous order. The said erroneous refund in case of the petitioner, was done on 19.09.2019. The three (3) year period for correcting any such erroneous refund, would expire on 19.09.2022. However, the impugned order has been passed on 25.03.2024. The said order is clearly beyond the limitation set out in Section 73(10) of the GST Act.
W.P.No.15130_2024
7.In that view of the matter, we are not going into the question of whether any erroneous refund can be adjusted by way of debiting the Electronic Credit Ledge of the tax payer or whether such refund has to be only by way of cash, since the refund was made by way of cash.
8.Accordingly, this Writ Petition is allowed setting aside the impugned order, dated 25.03.2024. There shall be no order as to costs.
As a sequel, pending miscellaneous applications, if any, shall stand closed. ________________________ R. RAGHUNANDAN RAO, J
________________ T.C.D. SEKHAR, J
Date:17.09.2025 KA
