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TMI Blog2020 (12) TMI 939X X X X Extracts X X X X X X X X Extracts X X X X ..... e petitioner that a considerable quantity of the sales effected by it is to SUPPLYCO and FACT, who deduct tax at the rate of 2% on payments made to the petitioner in terms of Section 51 of the GST Act. As part of the procedural compliance required under the GST Act, the petitioner is obliged to maintain two electronic ledgers with the department viz. the Electronic Cash Ledger and the Electronic Credit Ledger. The details of the said ledgers are as provided under Section 49 of the CGST Act. Into the Cash Ledger, is credited every deposit made towards tax, interest, penalty, fee or any other amount payable under the Act, and into the Electronic Credit Ledger is credited the Input Tax Credit available to the petitioner based on a self assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de by the deductor of tax in the instant case, the refund claimed by the petitioner could not be processed in terms of Section 54 of the Act. Although the petitioner preferred an appeal before the 3rd respondent against Ext.P4 order of the 2nd respondent, the petitioner has approached this Court through the present writ petition challenging Ext.P4 order, inter alia on the ground that the 2nd respondent completely misread the provisions of the Act while rejecting the application for refund preferred by the petitioner. 3. A statement has been filed on behalf of the 2nd respondent, wherein the sequence of events leading to the passing of Ext.P4 order have been narrated. In justification of Ext.P4 order, it is contended that the order passed i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of any balance in the Electronic Cash Ledger. The latter claim has to be read in the backdrop of the provisions of Section 49(6) of the Act, which clearly provides that the balance in the Electronic Cash Ledger or Electronic Credit Ledger after payment of tax, interest, penalty, fee or any other amount payable under the Act or the Rules made thereunder, may be refunded in accordance with the provisions of Section 54. What appears from the scheme of the aforesaid two provisions is that, whenever there are amounts credited into the Electronic Cash Ledger in accordance with the provisions of the Act, and a situation arises where, after the payment of tax, interest, penalty, fee or other amounts payable by an assessee, there remains a balance ..... X X X X Extracts X X X X X X X X Extracts X X X X
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