Department to Refund Demand Amount from Electronic Credit Ledger within 49 Days: HC
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- Last Updated on 14 December, 2022
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Case Details: Purulia Metal Casting (P.) Ltd. v. Assistant Commissioner of State Tax, Purulia -[2022] 145 taxmann.com 347 (Calcutta)
Judiciary and Counsel Details
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- Md. Nizamuddin, J.
- Sumit Ghosh & Souradeep Majumdar for the Petitioner.
- A. Ray, T.M. Siddiqui, D. Sahu & N. Chatterjee for the Respondent.
Facts of the Case
The department recovered the amount of demand arising out of adjudication by debiting from its electronic credit ledger. The petitioner challenged the impugned action of recovery of the demand arising out of the adjudication order and contended that action of department was in violation of Section 78 of the GST Act, 2017.
The Honorable High Court noted that adjudication order was passed on 14th December, 2021 while just within 49 days i.e. on 1st February, 2022, the department had recovered the demand amount without giving any opportunity to the petitioner three months’ time to file the statutory appeal which is mandatory before initiating any recovery proceeding. Therefore, the action of department was a clear violation of the provision of Section 78 of the GST Act.
High Court Held
Thus, the Court held that the department shall refund the money within 15 days which it has collected in excess of 10% pre-deposit amount for filing of appeal against the impugned adjudication order on condition that petitioner will file the appeal against the impugned adjudication order within 15 days.
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