2023 (6) TMI 1189 - HC - GST

Refund of GST - Petitioner claimed the refund from IRCTC which would in turn claim the refund form the GST department - Seeking directions from the Court passing order to effect GST refund - HELD THAT - Upon a perusal of the relevant clauses of Explanation(2)(d) to Section 54(14) of the 2017 Act, it is evident that there is no bar for this Court to pass such an order. The IRCTC is justified in seeking a complimentary refund direction from GST Authorities and that the order of refund to the petitioner should be coupled with a rider that the petitioner files an affidavit indicating that they have not availed the input credit of GST. The petitioner is directed to file an affidavit indicating that the petitioner has not availed the input credit of GST, including a complete working supported by relevant documents in connection with not claiming the input. Such affidavit shall be filed by the writ petitioner on July 4, 2023, when the matter shall next be listed for passing further orders - Petition disposed off.

Summary

Issues involved:
The issues involved in the judgment include refund of GST amount, interpretation of Section 54(14)(2)(d) of the Central Goods and Services Tax Act, 2017, and the requirement for the petitioner to file an affidavit indicating non-availment of input credit of GST.

Refund of GST amount:
The Court noted that efforts at reconciliation resulted in an instruction from the IRCTC Authorities regarding the refund of GST amount, specifying that the IRCTC must obtain an affidavit from the licensee confirming non-availment of input credit of GST, along with supporting documents. The IRCTC sought a refund direction from the GST Authorities in case the Court orders a refund to the petitioner.

Interpretation of Section 54(14)(2)(d) of CGST Act, 2017:
The Court examined Section 54(14)(2)(d) of the CGST Act, 2017, which states that when tax becomes refundable due to a judgment, decree, or order of the Court, the date of communication of such judgment is relevant for the refund of GST. The Court found no impediment in passing an order for refund, and agreed with the IRCTC's request for a complementary refund direction from the GST Authorities.

Requirement for petitioner to file affidavit:
The Court directed the petitioner to file an affidavit confirming the non-availment of input credit of GST, along with a complete working supported by relevant documents, by a specified date. The petitioner agreed to comply with this requirement, and upon filing the affidavit, final orders will be passed in the writ petition at the next hearing date.

Separate Judgement (if applicable):
No separate judgment was delivered by the judges in this case.