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TMI Blog2022 (5) TMI 1238X X X X Extracts X X X X X X X X Extracts X X X X ..... take the process of mining had to get itself registered in State of Odisha as per the statutory provisions of CGST/OGST to undertake the execution of the mining lease - the excess input tax credit has been sought to be utilized by raising tax invoices in favour of JSW Steel Ltd. in the State of Maharashtra, declared ISD, in the garb of support service. That apart, it is not clear at all as to what is support service which has been provided by JSW Steel Ltd.(Odisha) to JSW Steel Ltd.- ISD at Mumbai, much less any common services which could be utilized by other units located in other parts of the country. It also emerges that JSW Steel Ltd. in Odisha has utilized JSW Steel Ltd.- ISD Mumbai as wrongful conduit and facilitated the utilization of input tax credit by other units of JSW Steel Ltd., which in this manner have availed input tax credit twice, i.e. , once on the strength of the purchase invoices of supply of iron ore and the other on the strength of the tax invoices for alleged services issued by JSW Steel Ltd.-ISD at Mumbai. It is pertinent to notice that in view of definition of Input Service Distributor contained in Section 2(61), it is necessary that the ISD as an o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y step whatsoever pursuant to and/or in furtherance of the Impugned Order dated 28.03.2022; (d) Costs of any incidental to this application be paid by the Opp.Parties; (e) Such further or other order or orders be made and/or directions be given as would afford complete relief to the Petitioner. 3. The case of the Petitioner, public limited company, is that being engaged in the business of manufacturing and sale of hot and cold rolled coils and sheets, galvanized coils and sheets, and plates, it has been allotted with GSTIN 21AAACJ4323N2ZR (in the State of Odisha) and GSTIN 27AAACJ4323N2ZF (in the State of Maharashtra). In the State of Maharashtra the said registration number as ISD (Input Service Distributor) as defined under Section 2(61) of the CGST/OGST Act. 3.1. It is stated by the Petitioner that JSW Steel Ltd. (Mumbai) participated in the tender process invited by the Government of Odisha and was awarded the lease for undertaking of mining operations for iron ore blocks in the State of Odisha. In Odisha, said company has been allotted four blocks, i.e. , Jajang Block, Ganua Block, Narayanposhi Block and Nuagaon Block. It is claimed by the Petitioner tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , learned Senior Counsel appearing for the Petitioner-company submits that: i. The Order dated 28.03.2022 passed under Section 74 on the premise that there is element of fraud involved in claiming input tax credit by units located in other States being distributed by JSW Steel Ltd. GSTIN 27AAACJ4323N2ZF (in the State of Maharashtra) as ISD is unwholesome, arbitrary and without jurisdiction. JSW Steel Ltd. of Maharashtra being the successful bidder and being allotted the iron ore block in Barbil, Odisha it has paid royalty and other statutory dues in connection with extraction of iron ore through JSW Steel Ltd. bearing GSTIN 27AAACJ4323N2ZF (in the State of Maharashtra). The transaction is only to facilitate. Therefore, the input tax credit (unutilized) of JSW Steel Ltd. bearing GSTIN 21AAACJ4323N2ZR (in the State of Odisha) would be of JSW Steel Ltd. of GSTIN 27AAACJ4323N2ZF (in the State of Maharashtra). Therefore, the Revenue Authority in the State of Odisha has acted without jurisdiction in rejecting the transaction of distribution of unutilized input tax credit available in respect of JSW Steel Ltd. of Odisha to other units located outside the State of Odisha through JSW S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anner of distribution of credit by Input Service Distributor (ISD) provided under Section 20 of the OGST Act submitted that the term recipient of credit has been defined to mean the supplier of goods or services or both having the same Permanent Account Number as that of the Input Service Distributor. In such circumstance clause (viii) of Section 24 which begins with non-obstante clause requires compulsory registration of ISD (whether or not separately registered under the OGST Act). The term this Act used in said clause has significance. 6.2. The term Input Service Distributor has been defined under Section 2(61) of the OGST Act. It would mean an office of the supplier of goods or services or both which inter alia : i. receives tax invoices issued under Section 31; ii. such tax invoices must relate to receipt of input services. 6.3. In furtherance thereto, learned Advocate General has referred to Rule 54 of the OGST Rules which deals with tax invoice in special cases. Under item (i) of clause (a) of sub-rule (1A) of Rule 54 specifies that ISD is required to issue tax invoice having the same PAN and State Code as an ISD. 6.4. Therefore, the objec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es including the State of Maharashtra. 7. We have patiently heard both the sides, and with able assistance of counsel perused the pleadings. It is apparent that JSW Steel Ltd., public limited company, has units located in different States including the State of Odisha with its Head Office at Mumbai. The Head Office at Mumbai is registered as ISD bearing GSTIN 27AAACJ4323N2ZF. It is also registered as normal taxpayer being GSTIN 27AAACJ4323N3ZE in the State of Maharashtra. No doubt JSW-Company from its Head Office at Bombay had applied and participated in the tender process, however it cannot be lost sight of that its JSW-Company, and not Head Office, Bombay, which has been granted the mining lease for the four Iron mines situated within the State of Odisha. The Company to undertake the process of mining had to get itself registered in State of Odisha as per the statutory provisions of CGST/OGST to undertake the execution of the mining lease. It is conceded that the execution of work and all transactions including payment of tax being input recipient have been conducted by the JSW-Company from its office Barbil (Odisha). It cannot also be disputed that the outward supply of goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allow the prayer for restraining the Opposite Parties from effecting recoveries of the demand more so, in equitable jurisdiction under Article 226 of the Constitution of India. The Petitioner has not questioned vires of relevant and related provisions as discussed above. However, considering the other challenges as to jurisdiction (lack of jurisdiction or otherwise) of the State of Odisha as set out in the writ petition and pressed into service by the senior counsel for the Petitioner, while declining to allow prayer for restraining the opposite parties from effecting recovery of demand, this Court issues notice in W.P.(C) No.10052 of 2022 along with I.A. No.5190 of 2022. 11. Sri Lalatendu Samantaray, Additional Government Advocate appearing for opposite party No.2 and Sri Sunil Mishra, Additional Standing Counsel appearing for opposite party No.3 waive issue of notice. Let requisite number of copies of writ petitions be served on them within three working days for taking steps to file counter affidavit in writ petition as also objection to the I.A. Since none appeared for the opposite party No.1, requisites for service of notice by speed post with A.D. be filed by the Peti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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