Andhra Pradesh High Court has held that Revenue cannot make adjustment of I.G.S.T. into C.G.S.T. and S.G.S.T. The taxable person may claim refund of I.G.S.T. after payment of CGST. & SGST.
1. Petitioner : Walchandnagar Industries Limited
2. Respondents : respondent No.1 - Assistant Commissioner (ST), Kurupam Market Circle, Visakhapatnam
3. Appeal Type/ No. : WRIT PETITION No.6307 of 2022
4. CORAM :
- HON'BLE MR. JUSTICE C.PRAVEEN KUMAR
- HON'BLE MS. JUSTICE TARLADA RAJASEKHAR RAO
5. Council For Petitioners :
- Mr Vivek Chandra Sekhar
- Mr J.V.Rao
6. Council For R-1 : Government Pleader
7. Date of pronouncement : 21.07.2022
8. Facts :
- The Petitioner, Walchandnagar Industries Limited, is a Works Contractor, engaged in business of execution of contracts, manufacturing or sale of machinery and general goods. The petitioner company also manufactures industrial products like gears, centrifugals, castings and gauges. After bifurcation of the State of Andhra Pradesh, the petitioner became a registered dealer in the State of Andhra Pradesh under the provisions of the Andhra Pradesh Value Added Tax Act, 2005 with effect from 31.08.2014.
- The petitioner is said to have received a work order from Ministry of Defence (R&D), Government of India, for execution of aggregation work on defence vessels, S3 & S4, in line with the technical specifications given by the Department of Defence, New Delhi. In terms of the work order, the bills are to be raised in the name of Programme Director, Headquarters ATVP, New Delhi. The orders were to be executed in terms of the contract and on the instructions of Advance Technology, Vessel Programme Wing of the Ministry of Defence, New Delhi. The works/services have been executed at the site i.e., The Project Director, Ship Building Centre, Varuna Block, Godavari Gate, Scindia Road, Naval Base Post, Visakhapatnam. In terms of the contract, the payments were to be released from the Ministry of Defence, New Delhi based on the completion of work from stage to stage.
- The petitioner executed the works/services as per the terms of the contract in the recipient's location at Visakhapatnam. As the impugned transactions are interstate transactions, the petitioner collected Integrated Goods & Services Tax (for short, "I.G.S.T.") from the recipient and remitted the same to the Government.
- Revenue issued a show cause notice proposing to treat the transactions as intrastate supply of goods instead of interstate supply of goods.
- The petitioner requested the authorities to adjust the monies paid under I.G.S.T. towards the dues payable under C.G.S.T. and S.G.S.T. but the same came to be rejected by respondent No.1. Hence, an appeal came to be preferred before respondent No.2, which was also dismissed vide order, dated 30.12.2021, against which, the present writ petition came to be filed.
9. Nature of Issue : Adjustment of wrongly paid IGST into CGST & SGST
10. Industry : Not industry specific
11. Order :
In the assessment order, dated 05.10.2020, it is held that the revenue cannot make adjustment of I.G.S.T. into C.G.S.T. and S.G.S.T. The taxable person may claim refund of I.G.S.T. after payment of C.G.S.T. & S.G.S.T. and in view of the same, the objections filed by the taxable person were held not tenable.
In view of the fact that the nature of transaction is not in dispute, the present Writ Petition is disposed of directing the petitioner to pay C.G.S.T. and S.G.S.T. and thereafter, make a claim for refund of the amount under I.G.S.T.
12. In favour of : Revenue
13. Case Law References : N.A.
14. Relevant Act/ Rules/ Forms : A.
15. Database Citation : HC-GW-91-2022-AP
