M/S. Walchandnagar Industries Limited vs. The Assistant Commissioner (St)

Held

The Court noted that the nature of the transaction was not in dispute. The assessment order itself indicated that the office could not make an adjustment of IGST into CGST and SGST, and that the taxable person could claim a refund of IGST after paying CGST and SGST. In light of this, and considering the petitioner's alternative prayer, the Court disposed of the writ petition. The petitioner was directed to pay the CGST and SGST within three weeks. Subsequently, the petitioner was to make a claim for refund of the IGST amount paid before respondent No.1. Respondent No.1 was directed to process this refund claim as early as possible, preferably within four weeks thereafter. The Court made no order as to costs.

Facts

The petitioner, a works contractor, executed a work order for the Ministry of Defence. The petitioner considered these transactions as interstate supplies and collected and remitted Integrated Goods & Services Tax (IGST). However, the respondent No.1 (Assistant Commissioner) issued a show cause notice proposing to treat these transactions as intrastate supplies. Despite objections, respondent No.1 completed the assessment treating the transactions as intrastate and levied Central Goods & Services Tax (CGST) and Andhra Pradesh State Goods & Services Tax (SGST). The petitioner requested adjustment of the IGST paid against the CGST/SGST dues, which was rejected. An appeal to respondent No.2 was also dismissed. The petitioner then filed a writ petition challenging the orders and seeking adjustment of IGST paid or permission to claim a refund after paying CGST/SGST.

Key Issues

1. Whether the authorities ought to have adjusted the amount paid by the petitioner towards IGST against the alleged dues determined under CGST and SGST, given that the nature of the transaction was admitted? Petitioner's contention: The petitioner argued that since the nature of the transaction was admitted, the authorities should have adjusted the IGST amount paid. Alternatively, the petitioner contended that they would pay the CGST and SGST due and thereafter be permitted to claim a refund of the IGST paid. Revenue's contention: The learned Government Pleader for Commercial Tax did not seriously oppose the petitioner's submissions.