/** * The main template file * * This is the most generic template file in a WordPress theme * and one of the two required files for a theme (the other being style.css). * It is used to display a page when nothing more specific matches a query. * E.g., it puts together the home page when no home.php file exists. * * @link https://developer.wordpress.org/themes/basics/template-hierarchy/ * * @package WordPress * @subpackage Tally * @since 1.0.0 */ ?>
The Hon’ble High Court, Gujarat in M/S Comsol Energy Private Limited v. State of Gujarat [R/Special Civil Application No. 11905 of 2020 decided on December 21, 2020] allowed the refund claim of Integrated Goods and Service Tax (“IGST”) paid on ocean freight under the reverse charge mechanism (“RCM”) beyond the statutory time limit prescribed under Section 54 of the Central Good and Service Tax Act, 2017 (“the CGST Act”). Held that, the amount collected without authority of law cannot be considered as tax collected and therefore, Section 54 of the CGST Act shall not be applicable. Further, noted that the refund claim was within the time limit prescribed under the Limitation Act, 1963 (“the Limitation Act”).
Facts:
M/s Comsol Energy Private Limited (“the Writ-Applicant”) filed the refund claims of IGST paid on ocean freight under the RCM after the decision of Hon’ble High Court, Gujarat in Mohit Minerals (Pvt.) Ltd. v. Union of India and others [Special Civil Application No. 726 of 2018 dated January 23, 2020] in which it was held that the Notification No. 8/2017 – Integrated Tax (Rate) dated June 28, 2017, and Entry No. 10 of the Notification No. 10/2017 – Integrated Tax (Rate) dated June 28, 2017, lack legislative competency and the same were declared as unconstitutional.
The Department (“the Respondent”) issued the Deficiency Memo dated July 17, 2020 (“Impugned Deficiency Memo”) upon filing of the refund claims and stated that these were not filed within the statutory time limit under Section 54 of the CGST Act and special category for claiming refund of such amount is not provided by Section 54 of the CGST Act.
Being aggrieved by the Impugned Deficiency Memo, writ-application has been filed.
Issue:
Whether the Writ-Applicant can be allowed refund of IGST paid on ocean freight under RCM beyond time limit prescribed Section 54 of the CGST Act?
Held:
The Hon’ble High Court, Gujarat R/Special Civil Application No. 11905 of 2020 decided on December 21, 2020, has held as under:
Relevant provisions:
Section 17(1) of the Limitation Act
“17. Effect of fraud or mistake—
(1) Where, in the case of any suit or application for which a period of limitation is prescribed by this Act,—
the period of limitation shall not begin to run until the plaintiff or applicant has discovered the fraud or the mistake or could, with reasonable diligence, have discovered it; or in the case of a concealed document, until the plaintiff or the applicant first had the means of producing the concealed document or compelling its production.”
Section 54(1) of the CGST Act
“54. Refund of tax.
(1) Any person claiming refund of any tax and interest, if any, paid on such tax or any other amount paid by him, may make an application before the expiry of two years from the relevant date in such form and manner as may be prescribed:
Provided that a registered person, claiming refund of any balance in the electronic cash ledger in accordance with the provisions of sub-section (6) of section 49, may claim such refund in the return furnished under section 39 in such manner as may be prescribed.”
Online GST Course by Bimal Jain
Recorded: Certified Advanced GST Course
Course Details: Certificate of Participation will be Provided, Free GST Updates on E-mail, WhatsApp, Telegram for 1 Year, Background Material and PPT will be Provided on the downloadable basis, Total 21 Recorded Sessions (60 Hours), will be available for 120 hours or 60 Days whichever expires earlier.
For Registration: https://cutt.ly/hxjl5Cu
Recorded: GST Course on Exports, Deemed Exports, SEZ, Imports, Merchandise Exports, Inverted Duty Structure (including Refunds)
Course Details: 6 Online Recorded Sessions of 2.30Hrs each with Background Material (BGM)
For Registration: https://cutt.ly/pvw7mzl
For more details,
Call: +91-8076563802 | E-mail: intern@a2ztaxcorp.com | Web: www.a2ztaxcorp.in
DISCLAIMER: The views expressed are strictly of the author and A2Z Taxcorp LLP. The contents of this article are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.
The Hon’ble Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, while presenting the Interim Budget 2024-25 in Parliament today asserted that by unifying the highly fragmented i
Read More
The Goods and Services Tax Network (GSTN) ushers in a transformative update to the GSTR-1 return, unveiling two pivotal tables – Table 14 and Table 15.
Read More
The latest release of TallyPrime is loaded with key features such as GST reconciliation ( GSTR-2A, GSTR-2B, and GSTR-1), multi-GSTIN support in a single company, powerful report filters, and..........
Read More
Key Recommendations of the 52nd GST Council Meeting: All You Need To Know 📌 A. Recommendations relating to GST rates on goods and services: 📢 I. Changes in GST rates of goods: ➡️ GST rates for "F
Read More
NIC has published the following error codes, error message, the reasons for the errors and the corresponding resolutions to help you resolve errors faced during e-Invoice upload to the NIC portal.
Read More