2023 (10) TMI 142 - HC - GST

Claim for Complementary refund by the GST authorities to the IRCTC - HELD THAT - Such complementary refund to the IRCTC shall be considered by the GST authorities in accordance with law. However, there cannot be any doubt that the petitioner is entitled to a refund of the GST component from the IRCTC. Petition is disposed of by directing the IRCTC to refund the GST component to the petitioner, in view of the cancellation of the licence between the parties by mutual agreement, as expeditiously as possible, positively within three weeks from date.

Summary

Issues involved:
The issues involved in the judgment include the refund of GST by IRCTC to the petitioner following the cancellation of a contract by mutual agreement.

Refund of GST:
The writ petitioner had entered into a contract with IRCTC, and upon mutual agreement, obtained an early exit from the contract. The petitioner applied for a refund of GST after the cancellation of the license, but IRCTC initially refused to provide the refund. A previous writ petition was filed, resulting in a direction for IRCTC to consider the petitioner's representation and provide reasons for the refusal. Despite this, IRCTC reiterated the refusal. During the hearing, IRCTC expressed willingness to refund the GST subject to a complementary refund by the GST authorities. The petitioner confirmed not availing input credit of GST, clearing the way for the refund. The Court held that the petitioner is entitled to the GST refund, directing IRCTC to refund the amount expeditiously within three weeks. IRCTC was allowed to apply for a complementary refund from the GST authorities, which would be considered in accordance with the law.

Complementary Refund by GST Authorities:
The Court emphasized that the complementary refund to IRCTC should be considered by the GST authorities based on the law. The Court clarified that while the petitioner is entitled to the GST refund from IRCTC, the complementary refund to IRCTC cannot be mandated through a blanket court direction. IRCTC was given the liberty to apply for a complementary refund, which would be processed by the GST authorities in accordance with the law and granted if deemed legally entitled.

Conclusion:
The judgment in WPO 1053 of 2023 directed IRCTC to refund the GST component to the petitioner promptly, within three weeks. The Court made it clear that IRCTC could apply for a complementary refund from the GST authorities, to be processed and granted based on legal entitlement. No costs were awarded, and parties could obtain the urgent certified website copy of the order upon compliance with formalities.