M/S Ansh Communication vs. The Union Of INDIA

Held

The Court noted that it was an admitted position that the petitioner had deposited the entire tax under the heading "Any other payment" through different challans. The Court considered the specific stand of the respondent in paragraph 20 of its counter affidavit, which stated that the petitioner has the option to seek a refund of the amount deposited erroneously as "Any other payment" and thereafter make a fresh payment against the assessed tax liability. Accordingly, the Court disposed of the writ application with liberty to the petitioner to seek a refund of the amount erroneously deposited under the heading "Any other payment" and subsequently make a fresh payment against the assessed tax liability. The respondent authorities were directed to adhere to the statement in the counter affidavit and process the refund within a reasonable timeframe. The Court also directed that no coercive steps would be taken against the petitioner for the realization of the tax amount until the refund was processed and paid.

Facts

The petitioner, M/s Ansh Communication, filed its GSTR-01 for the financial year 2019-20, admitting a tax liability of Rs. 8,06,270/-. Subsequently, an Adjudication Authority issued a demand notice for Rs. 8,36,090/- on January 28, 2021. The petitioner did not file an appeal but deposited the entire amount through multiple challans, categorizing the payment as "Any other payment." The respondent authorities refused to adjust this payment, citing the "Any other payment" classification and the absence of a DRC-07 reference number. The petitioner sought directions to adjust these payments towards its tax liability.

Key Issues

1. Whether the payment made by the petitioner under the head "Any other payment" can be adjusted towards its admitted tax liability and the demand raised by the respondent authorities, despite not having a DRC-07 reference number? The petitioner argued that the payment was intended for IGST and should be adjusted against CGST and SGST liabilities. The petitioner contended that the authorities erred in not considering the payment made under "Any other payment." The revenue/State argued that the petitioner could seek a refund of the amount deposited under "Any other payment" and then make a fresh payment against the assessed tax liability. The State further submitted that once the fresh payment is adjusted, the refund of the "Any other payment" would be processed. The State relied on the stand taken in paragraph 20 of its counter affidavit.