Terra Motors INDIA PVT LTD vs. The Assitant Commissioner,State Tax Bally Charge And Ors

Facts

The petitioner, Terra Motors India Private Limited, filed a writ petition challenging an adjudication order and an order of the Appellate Authority concerning Electric Vehicles. The petitioner contended that these orders were contrary to a Circular dated August 3, 2022, issued by the Government of India, Ministry of Finance, which they claimed entitled them to a refund of excess GST collected. The State GST authority, represented by learned Advocate Mr. Ghosh, acknowledged that while the State Government had not yet issued a similar circular, it intended to do so shortly. The State proposed remanding the matter to the Adjudicating Authority to consider the refund claim in light of the Central Government's circular.

Held

The Court considered the submissions of both parties. It noted the petitioner's contention that the impugned orders were contrary to the Central Government's Circular dated August 3, 2022, and their entitlement to a refund. The Court also took into account the State GST authority's submission that a similar circular was forthcoming from the State Government and their proposal to remand the matter. Consequently, the Court decided to set aside the impugned adjudication order and the appeal order. The matter was remanded back to the Adjudicating Authority. The Adjudicating Authority was directed to pass a fresh order, taking into consideration the benefit provided to the assessee/petitioners in the Central Government's Circular dated August 3, 2022. This fresh order was to be passed within a period of eight weeks from the date of communication of the Court's order. No specific issue was expressly left undecided.

Key Issues

1. Whether the impugned adjudication order and the order of the Appellate Authority relating to Electric Vehicles are contrary to the Circular No. 179/11//2022-GST dated 3rd August, 2022, issued by the Government of India, Ministry of Finance, thereby entitling the petitioner to a refund of excess GST collected? Petitioner's Contention: The petitioner argued that the impugned orders were in direct contravention of the aforesaid Central Government Circular, and consequently, they were entitled to a refund of the excess GST paid. They relied on this Circular as the basis for their claim. Revenue's (State) Contention: The State GST authority, while not having issued a similar circular yet, indicated an intention to do so shortly. They submitted that the matter should be remanded back to the Adjudicating Authority to consider the petitioner's refund claim in light of the Central Government's Circular dated August 3, 2022.