2023 (12) TMI 1050 - HC - GST

Failure on the part of the respondent to deposit an amount paid by the petitioner towards Goods and Service Tax to the respondent No. 1 - HELD THAT - It is informed by the learned counsel for the Khopoli Municipal Council that the amount of Rs.38,94,868/- has been deposited in this Court on 6th July 2023 by demand draft. If that be so, what remains is the deposit of the said amount with the GST Authorities, in even proportion as per the requirement of the Central Goods and Services Tax (CGST) Act and also the Maharashtra State Goods and Services Tax (MGST) Act - Registry of this Court accordingly to receive intimation from the learned Advocate for the said Respondents authorities, to furnish bank account details of the concerned jurisdictional authorities so that the said amount can be transferred by this Court. The said compliance would be completed within two weeks from today and on receipt of such information, office to deposit the amount as directed within one week thereafter. The CGST Authorities and SGST Authorities to consider the Petitioner s case sympathetically with regard to interest and penalty - Petition disposed off.

Summary

Issues involved:
The petition challenges the failure of the Khopoli Municipal Council to deposit an amount paid by the petitioner towards Goods and Service Tax (GST).

Details of the judgment:

Issue 1: Failure to deposit GST amount:
The petitioner, a Partnership Firm engaged in real estate construction, deposited an amount towards premium charges and GST with the Khopoli Municipal Council. Despite this, the Council failed to deposit the GST amount with the GST Authorities, resulting in the petitioner being unable to avail input credit. The petitioner sought direction for the Council to deposit the GST amount.

Issue 2: Court's direction and compliance:
The Court directed the Khopoli Municipal Council to deposit the GST amount within two weeks, which was done by the Council. The Court then instructed the Council to deposit the amount with the GST Authorities as per the CGST and MGST Acts. The Council was given two weeks to provide bank account details for the transfer of the amount.

Issue 3: Interest liability and consideration:
The respondent's counsel raised concerns about interest liability even in peculiar circumstances. The Court referred to a previous order and emphasized that in this case, the authorities should consider the petitioner's case sympathetically regarding interest and penalty. The Court directed the CGST and SGST Authorities to assess the petitioner's case compassionately in terms of interest and penalty.

Conclusion:
The Court disposed of the case with the terms mentioned, allowing the petitioner to claim input credit upon the deposit made as permissible by law. All other contentions of the parties on different issues were kept open, and no costs were awarded in this matter.