HC Directed GST Authority to Refund Entire GST Amount to Assessee Since Supplier Didn’t Supply Goods & Advance Paid Back
- Blog|News|GST & Customs|
- < 1 minute
- By Taxmann
- |
- Last Updated on 28 May, 2024
Latest from Taxmann
Case Details: Nam Estates (P.) Ltd. v. Joint Commissioner of Commercial Taxes (Appeals-I) - [2024] 162 taxmann.com 302 (Karnataka)
Judiciary and Counsel Details
-
- S.R. Krishna Kumar, J.
- Smt. Krishika Vaishnav & A. Mahesh Chowdhary, Advs. for the Petitioner.
- Hema Kuamar, AGA for the Respondent.
Facts of the Case
The assessee entered into an agreement with the vendor for the purchase of goods. The assessee paid an advance amount to the vendor and also paid the GST on such advance amount. The vendor paid the GST amount to the Government from the advance amount received from the assesse. However, the vendor did not supply the goods, and the agreement was cancelled. The assessee recovered the advance amount by encashing the bank guarantee furnished by the vendor.
Thereafter, the assessee applied for a refund of the GST paid on the advance amount. However, the refund application was rejected, and the assessee filed an appeal before the appellate authority, which was also dismissed. Aggrieved by the order, the assessee filed a writ petition before the Karnataka High Court.
High Court Held
The High Court held that the assessee was entitled to a refund of the GST paid on the advance amount. There was no liability to pay GST since the vendor did not supply the goods and the agreement was cancelled. Accordingly, the amount of GST paid by the vendor was to be refunded to the assessee.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
