Ajay Kumar Maheshwari vs. Union Of INDIA And Ors.
Facts
The petitioner, Ajay Kumar Maheshwari, filed a writ petition challenging the action of the respondent WBGST Authority demanding the refund of an amount along with penalty and interest, which was allegedly refunded to the petitioner by mistake. The court had previously directed the petitioner to take instructions on refunding the amount in installments. The petitioner agreed to refund the amount. The dispute pertains to a refund erroneously granted by the revenue authorities. The petitioner had already paid an amount of approximately Rs. 6 lakhs.
Held
The Court held that the petitioner is liable to refund the amount erroneously received along with interest. However, the Court found the petitioner not liable to pay any penalty on the refundable amount. This decision was based on the admitted fact that the refund was granted due to a mistake on the part of the respondent/revenue authorities, and there was no fault on the part of the petitioner. The Court directed the petitioner to refund the principal amount along with interest, after adjusting the already paid amount of approximately Rs. 6 lakhs, in two equal installments. The first installment was to be paid by February 15, 2023, and the second by April 1, 2023. The Court also stipulated that upon payment of installments, the amount should be reflected in the petitioner's Electronic Credit Ledger. Failure to adhere to the installment schedule would render the order ineffective, allowing the respondents to pursue recovery of the entire amount.
Key Issues
1. Whether the petitioner is liable to refund the amount erroneously granted as refund by the revenue authorities, along with interest. 2. Whether the petitioner is liable to pay penalty on the refundable amount. Petitioner's Contention: The petitioner argued that he should not be liable for penalty as the refund was erroneously granted due to a mistake on the part of the revenue authorities, and not due to any fault of the petitioner. The petitioner also agreed to refund the principal amount along with interest. Revenue's Contention: The respondent WBGST Authority sought the refund of the amount along with penalty and interest, contending that the refund was erroneously processed. The judgment does not explicitly record the revenue's argument regarding penalty, but their action implies a demand for it.
AI-generated summary — verify with the full judgment below
2023 ks WPA 20541 of 2022 sl. 2 Ajay Kumar Maheshwari Vs Union of India & Ors.
Mr. Pranit Bag, Ms. Shubhangini Singh, Mr. Sushanto Vishwakarma, Mr. A.K. Singh … For the Petitioner.
Mr. Kaushik Dey, Ms. Ekta Sinha … For the CGST Authority.
Ms. Avipsa Sarkar … For the UOI.
Mr. A. Ray, Ld. GP., Mr. T.M. Siddiqui, Mr. S. Mukherjee, Mr. D. Ghosh … For the State.
Heard learned Advocates appearing for the parties.
Petitioner has filed this writ petition being aggrieved by the action on the part of the respondent WBGST Authority asking the petitioner for refund back the amount in question along with penalty and interest, which according to the respondent authorities was refunded due to mistake. By the earlier order of this court dated 9th January, 2023, Mr. Bag, learned Advocate appearing for the petitioner was asked to take instructions from the petitioner as to whether he is agreeable to refund the amount in question by installments to which Mr. Bag submits
The judgment continues below.
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