M/S Modern Cooling Solutions vs. State Of Punjab And Others
Held
The Court noted the affidavit filed by the State of Punjab, which admitted that the deduction of tax under the GST regime was wrong and that the amount was required to be refunded. The affidavit detailed the issuance of a refund sanction order for Rs. 7,24,694/- and the preparation of a refund bill. The Court accepted the State's submission that the incorrect deduction was being rectified. The Court directed that if the refund was not made within two weeks, the petitioner would be at liberty to apply for further directions. The petition was disposed of in terms of these directions, leaving it open for the petitioner to pursue other remedies if any other grievance survived.
Facts
The petitioner, M/s Modern Cooling Solutions, filed a writ petition before the High Court of Punjab and Haryana. The State of Punjab, through an affidavit by the Assistant Excise & Taxation Commissioner, admitted that tax was wrongly deducted under the GST regime. This incorrect deduction of Tax Deducted at Source (TDS) was identified by Respondent No. 4. Consequently, a refund sanction order dated February 17, 2020, was issued for an amount of Rs. 7,24,694/- in favour of the office of Water Supply and Sanitation, S.A.S. Nagar. A refund bill was also prepared and forwarded to the Treasury for release. The Court noted that if the refund was not processed within two weeks, the petitioner could apply for further directions.
Key Issues
1. Whether the deduction of tax under the GST regime, as stated in the affidavit, was erroneous and required a refund? The petitioner's side was not represented. The revenue (State of Punjab) contended that the deduction of tax under the GST regime was indeed wrong and that a refund was due. They submitted an affidavit admitting the error and detailing the steps taken to process the refund of Rs. 7,24,694/-. The revenue relied on the refund sanction order and the subsequent refund bill prepared for the release of funds.
Sections Cited
None explicitly mentioned in the provided text.
AI-generated summary — verify with the full judgment below
CWP No. 26971 of 2019 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP No. 26971 of 2019 (O&M) Date of Decision: 17th March 2020 M/s Modern Cooling Solutions .......Petitioner Versus State of Punjab and others ......Respondents CORAM: JUSTICE S.MURALIDHAR JUSTICE AVNEESH JHINGAN Present: None for the petitioner. Mr.Pankaj Gupta, Addl. A.G., Punjab. Dr. S. Muralidhar, J.
Counsel for the State of Punjab has handed over an affidavit of the Assistant Excise & Taxation Commissioner, at S.A.S. Nagar, Mohali, Punjab dated 16.03.2020 in which in para 15, it is stated as under :- “That the contents of the para are admitted to the extent that the deduction of the tax on the payments made under the GST regime was wrong and the same is required to be refunded. It is most respectfully submitted that after the wrong deduction of TDS came to the notice of the Respondent No. 4, a refund sanction order No. VAT/SAN/2019-20/69 dated 17.02.2020 was issued for release of refund amounting to Rs. 7,24,694/- (Seven Lacs Twenty Fou
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