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2024 (8) TMI 1196 - HC - GSTChallenge to order passed on remand under Section 73 of the WBGST/CGST Act 2017 - HELD THAT - Having heard the learned advocates appearing for the respective parties and taking note of the factum of payment made by the petitioners in Form GST DRC 03 dated 29th July, 2024 and the amendment to the CGST Act, 2017, inter alia, including the insertion of Section 128A(1), 128A(1)(b), and the recommendations made in the 53rd GST Council Meeting, the matter requires reconsideration by the respondent no. 1. In view thereof, while remanding the matter back to the respondent no. 1, I direct the respondent no. 1 to reconsider the aforesaid issue and to pass a fresh reasoned order - Petition disposed off by way of remand.
Issues:
Challenging orders passed under Section 73 of the WBGST/CGST Act 2017 for different tax periods, non-disbursement of additional payments by respondents, transfer of amount to GST authorities, amendment to CGST Act 2017, interest liability and penalty on petitioners, reconsideration of tax liability computation, remand of the matter to respondent no. 1 for fresh order. Analysis: The petitioners filed a writ petition challenging orders passed under Section 73 of the WBGST/CGST Act 2017 for various tax periods. The Additional Chief Secretary had directed the respondent departments to compensate the petitioners for the incremental tax burden due to GST implementation. Despite this direction, the GST authorities determined tax liability, and no additional payments were disbursed initially. Subsequently, an amount was sanctioned and released to the petitioners, which they transferred to the GST authorities to discharge their tax liability. The petitioners argued that the demand raised by respondents and the payment made by them aligned with their tax liability as per the orders and Electronic Liability Ledger. The petitioners also highlighted an amendment to the CGST Act 2017, inserting Section 128A after Section 128, which impacts the present case. They argued that since they had paid the full tax amount as per the orders and no appeal was preferred, no interest or penalty should be imposed on them. The amendment provided for the conclusion of proceedings subject to prescribed conditions, which they claimed were met in their case. The date for payment under the amendment was yet to be notified, pending the 53rd GST Council Meeting's recommendations. The Government Pleader acknowledged the petitioners' apparent discharge of tax liability but emphasized the need for proper computation considering the Electronic Credit Ledger and the payment made in Form GST DRC-03. The Court, after considering the arguments and the amendment to the CGST Act, remanded the matter to respondent no. 1 for reconsideration. It directed respondent no. 1 to pass a fresh reasoned order and stayed the orders impugned, including the demands raised, until the fresh order is issued. The writ petition was disposed of with these directions, and all parties were instructed to act based on the server copy of the order downloaded from the Court's official website.
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