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TMI Blog2020 (1) TMI 833X X X X Extracts X X X X X X X X Extracts X X X X ..... he IGST amount along with due interest. 3. The petitioner is a company registered under the provisions of the Central Goods & Services Tax Act, 2017, (herein after referred to as the 'CGST Act'), and the Integrated Goods and Services Tax, Act, 2017, (herein after referred to as the 'IGST Act'). The dispute relates to the month of September, 2017, i.e., soon after the implementation of the aforesaid Acts, wherein the petitioner filed its GSTR-1, showing his total Integrated Tax liability for that month at Rs. 74,51,127/-, the Central Tax liability to be Rs. 2,68,470/-, and State Tax liability for Rs. 2,68,470/-. Subsequently, the petitioner submitted its GSTR- 3B, in which the Integrated Tax liability was shown to be Rs. 32,52,484.58/- as against the actual liability of Rs. 74,51,127/-, and Central Tax liability was shown to be Rs. 44,67,113.71/- as against the actual liability of Rs. 2,68,470/-. In other words, in the liability shown under the IGST there was a deficient liability amounting to Rs. 41,98,642.42/-, whereas in the CGST the excess was shown to the tune of Rs. 41,98,643.71/-, and the tax was also paid accordingly. This remained unnoticed for a period of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supply itself, regarding its nature being inter-State. However, while filing GSTR-3B, the stand which was correctly taken in GSTR-1 had now been changed and accordingly, the tax and interest liabilities of the petitioner were there, for the reasons detailed in the said letter. In the said letter, it is also shown that for making the deposit of the tax under the CGST head, the amount of Rs. 43,61,043/- was deposited by the petitioner in its electronic cash ledger, in cash, and thereafter from the same electronic cash ledger the tax was paid under the CGST head. It is submitted by learned counsel for the petitioner that had there been any otherwise intention of the petitioner Company, the petitioner would not have deposited the cash in its electronic cash ledger for making the payment of IGST, as the same amount could have been utilised by the petitioner in the electronic cash ledger to be used for IGST head as well. 6. Learned counsel for the petitioner has further drawn our attention towards Section 77 of the CGST Act, as also Section 19 of the IGST Act, to show that under Section 77(1) of the CGST Act, if a registered person who has paid the Central tax, as in the case of the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the GSTR-3B was filed by the petitioner intentionally showing their liability under the IGST to be only Rs. 32,52,485/- and also wrongly showing CGST liability to be Rs. 44,67,114/- for the reasons best known to the petitioner. 9. Learned counsel for the CGST has further submitted that there is no provision for transfer / adjustment / utilization of paid tax from one head to the other head and accordingly, the submission of the petitioner could not be acceded to. Learned counsel has also drawn our attention towards Article 269-A of the Constitution of India, to show that though it is the Central Government which realises the tax under the IGST head, but it also includes the proportion of the tax of the State to which it may be applicable, and accordingly, it is submitted by learned counsel that by the extra payment of CGST, though the tax was paid in the coffer of the Central Government, but the concerned State was denied of its proportion in the tax deposited by the petitioner, and accordingly, the liability of the interest shall be made out. 10. Learned counsel for the CGST has also drawn our attention towards Section 49(3) of the CGST Act, to show that the amount available i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther amounts.- (3) The amount available in the electronic cash ledger may be used for making any payment towards tax, interest, penalty, fees or any other amount payable under the provisions of this Act or the rules made thereunder in such manner and subject to such conditions and within such time as may be prescribed. (4) The amount available in the electronic credit ledger may be used for making any payment towards output tax under this Act or under the Integrated Goods and Services Tax Act in such manner and subject to such conditions and within such time as may be prescribed." Section 77 of the CGST Act reads as follows:- "77. Tax wrongfully collected and paid to Central Government or State Government.- (1) A registered person who has paid the Central tax and State tax or, as the case may be, the Central tax and the Union territory tax on a transaction considered by him to be an intra-State supply, but which is subsequently held to be an inter-State supply, shall be refunded the amount of taxes so paid in such manner and subject to such conditions as may be prescribed. (2) A registered person who has paid integrated tax on a transaction considered by him to be an inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T is that there was some ulterior motive behind the deposit of tax under the CGST head, which is evident from the fact that the petitioner had filed its GSTR-1 in which the tax liability was correctly shown, showing the supply to be the inter-State supply, but the stand was changed in the form GSTR-3B. From the letter dated 05.04.2019, issued by the respondent No.2 as contained in Annexure-6 to the writ application, it is apparent that for discharging his liability of tax, the petitioner had deposited cash in its electronic cash ledger, as admitted in the letter itself. Had there been otherwise intention on the part of the petitioner, the same cash could have been deposited by the petitioner in the electronic cash ledger used to deposit the tax under the IGST head, but it is the claim of the petitioner that inadvertently due to the fact that it was the initial stages of the GST regime, the cash was deposited in the electronic cash ledger of CGST head. There appears to be substance in the submission of learned counsel for the petitioner, inasmuch as, by deliberately depositing the cash in the electronic cash ledger for the CGST head, at the place of IGST head, possibly no benefit wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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