Uflex Limited Th Jorawar Singh Chib. vs. Union Of INDIA Th Secretary Finance And Others.
Held
The Court disposed of the petition by directing respondent No. 2 to consider the petitioner's claim for release of budgetary support for the month of January 2019. The Court explicitly stated that it had not made any observations regarding the merits of the parties' claims. The necessary action is to be completed within six weeks from the date of service of the order to respondent No. 2. The Court did not address the other prayers made by the petitioner regarding the refund of Central Tax and IGST for the Packaging Division or the carrying forward of input tax credit for the Holography Division.
Facts
The petitioner, Uflex Limited, filed a writ petition challenging an order dated 30.09.2019 passed by respondent No. 2. This order rejected the petitioner's claim for refund/reimbursement of Central Tax (58%) and IGST (29%) related to its Packaging Division, as per notification No. F. No. 10(1)/2017-DBA-II/NER dated 05.10.2017. The petitioner also sought directions to allow carrying forward input tax credit of IGST paid for setting up the Holography Division for tax periods from 2019 onwards, due to a lack of mechanism on the GST portal for manual inter-se adjustments. Additionally, the petitioner requested the refund of Central Tax and integrated tax for January 2019 to March 2019 for the Packaging Division.
Key Issues
1. Whether the respondent No. 2 should be directed to consider the petitioner's claim for release of budgetary support for the month of January 2019, considering that Section 49A of the GST Act was incorporated with effect from 01.02.2019 and budgetary support reimbursement is quarterly while returns are monthly. Petitioner's contention: Section 49A was incorporated on 01.02.2019. Reimbursement of budgetary support is quarterly, whereas returns are filed monthly. The respondent No. 2 should be directed to consider the claim for budgetary support for January 2019. Respondents' contention: The learned counsel for the respondents is not averse to the prayer made by the petitioner.
Sections Cited
Section 49A
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Cause title — parties, addresses and appearances
ORDER (ORAL)
The petitioner has filed the present petition for quashing the order dated 30.09.2019 passed by the respondent No. 2 whereby the claim of refund/reimbursement of Central Tax to the extent of 58% and IGST to the extent of 29% as mandated by notification No. F. No. 10(1)/2017- DBA-II/NER dated 05.10.2017 has been rejected in respect of Packaging Division. The petitioner has also sought indulgence of this Court to issue directions to the respondent No. 2 to allow the petitioner to carry forward the input tax credit of IGST paid against the interstate purchase of goods and services in relation to setting up of Holography Division for manufacture of Holograms for the tax period of 2019 and onward by making manual inter-se adjustments on records in the absence of mechanism in the common
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