Autohaus Private Limited And Anr vs. The Ld. Deputy Commissioner, State Tax, Shibpur Charge And Ors

Facts

The petitioners, Autohaus Private Limited & Anr., filed a writ petition challenging an adjudication order and an order of the Appellate Authority concerning Electric Vehicles. They drew the court's attention to a Circular dated August 3, 2022, issued by the Government of India, Ministry of Finance, arguing that the impugned orders were contrary to this Circular and entitled them to a refund of excess GST collected. The State GST authority acknowledged that while the State Government had not yet issued a similar circular, it intended to do so shortly. The State's advocate suggested remanding the matter to the Adjudicating Authority to consider the refund claim in light of the Central Government's Circular.

Held

The Court held that both the writ petition and the connected application should be disposed of by setting aside the impugned adjudication order and the appeal order. The matter was remanded back to the Adjudicating Authority concerned. The Adjudicating Authority was directed to pass a fresh order after taking into consideration the benefit given to the Assessee/petitioners in the 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. The reasoning was based on the submissions of both parties, particularly the State's acknowledgment of the Central Government's Circular and their intention to issue a similar one, and the petitioners' reliance on the Central Circular for their refund claim.

Key Issues

1. Whether the impugned adjudication order and the order of the Appellate Authority relating to Electric Vehicles are contrary to the Circular dated August 3, 2022, issued by the Government of India, Ministry of Finance, thereby entitling the petitioners to a refund of excess GST collected? (Question of law) Petitioner's contention: The petitioners argued that the impugned orders were contrary to the Central Government's Circular dated August 3, 2022, and that they were entitled to a refund of excess GST collected. They relied on this Circular to support their claim. Revenue's contention: The State GST authority, represented by Mr. Ghosh, submitted that the State Government was going to issue a circular similar to the Central Government's Circular very soon. They proposed that the matter be remanded back to the Adjudicating Authority to consider the petitioners' refund claim in light of the aforesaid Circular.