2022 (7) TMI 867 - HC - GST

Refund of amount excessively debited from the Electronic Credit Ledger Account - Pre-deposit before filing of appeal - time limitation - HELD THAT - The petitioner has preferred an appeal before the appellate authority under the CGST Act against the order of adjudication dated December 3, 2021. There is some delay in preferring the said appeal and the learned Advocate for the petitioner contends that the period of limitation being extended by the Hon ble Supreme Court in IN RE COGNIZANCE FOR EXTENSION OF LIMITATION 2022 (1) TMI 385 - SC ORDER , the respondent authorities cannot contend that the appeal was filed beyond the prescribed period of limitation. However, this Court does not deem it necessary to decide such issue at this stage as this Court is now concerned as to whether there has been substantial compliance of the provisions laid down under sub-Section (6) of Section 107 of the CGST Act as the scope of this writ petition is whether the respondent authority can be directed to refund the amount debited from the Electronic Credit Ledger Account of the petitioner. Since it is not in dispute that the petitioner has complied with the provisions laid down in Section 107(6)(b) of the CGST Act, it necessarily follows that the recovery proceedings for the balance amount shall be deemed to be stayed - the interest of the revenue has been well protected in the manner as specifically provided in the statute. This Court is thus of the considered view that the concerned respondent authority should be directed to restore back the amount which was debited from the electronic credit ledger account of the petitioner on March 7, 2022 which is appearing from the document annexed as Annexure P/6 at page 70 of the writ petition. The concerned respondents are directed to restore the aforesaid amount, which was debited from the electronic credit ledger account of the petitioner on March 7, 2022 forthwith but positively within a period of two weeks from date - Application allowed.

Summary

Issues:
1. Challenge to order debiting amount from electronic credit ledger account.
2. Compliance with provisions of CGST Act regarding deposit of disputed tax amount.
3. Statutory appeal filed after expiration of limitation period.
4. Direction for refund of debited amount.

Analysis:
1. The writ petition was filed to challenge the order debiting a substantial amount from the petitioner's electronic credit ledger account. The petitioner claimed to have preferred a statutory appeal against the adjudication order. The petitioner argued that the respondent authorities acted illegally by debiting the amount, preventing the petitioner from utilizing the balance in the electronic credit ledger account.

2. The petitioner's advocate contended that as the petitioner had approached the appellate authority and deposited a portion of the disputed tax amount, the recovery proceedings for the balance amount should be stayed as per Section 107(6)(b) of the CGST Act. The court found that the petitioner had complied with the provisions, and thus, the recovery proceedings should be deemed to be stayed, protecting the interest of revenue.

3. Although there was a delay in filing the appeal beyond the limitation period, the court did not delve into this issue extensively. Instead, the focus was on determining whether there was substantial compliance with the provisions of Section 107(6) of the CGST Act. The court emphasized that the main concern was whether the respondent authority could be directed to refund the debited amount.

4. Ultimately, the court directed the concerned respondents to restore the amount debited from the electronic credit ledger account of the petitioner within two weeks. The court allowed the writ petition without imposing any costs, ensuring the timely refund of the disputed amount and upholding the petitioner's rights in utilizing the electronic credit ledger balance.