Section 77 of the CGST Act, 2017—Deposit of tax under different Heads —– The petitioner supplied manpower service to M/s GVK Jaipur Expressway Pvt. Ltd and deposited 18% IGST treating the supply to be inter-state services. The respondent served a SCN dated 03.07.2020 for a demand of CGST+RGST under Section 74 of the Act along with interest and penalty, which was confirmed vide order and further affirmed in Appeal Order. The counsel for the petitioner submitted that the service of supply of manpower to an entity in Rajasthan by the petitioner is an inter-state transaction as the said supply has been undertaken by the petitioner from a place of business outside Rajasthan to a place in the State of Rajasthan. The court observed that the core issue is whether the transaction of supply of manpower by the petitioner to a company in Rajasthan is an inter-state transaction or it is an intra-state transaction and it requires deeper consideration.

Held that:- The Hon’ble High Court directed the State of Rajasthan and the Union of India to submit their response within a period of one month, so that the matter may be heard finally immediately thereafter. The petitioner cannot be compelled to pay tax on the services rendered by it twice, therefore, the petitioner may apply for the refund of the IGST in the prescribed form as per the Act and the Rules within a period of two weeks and in the event such application is moved and is found to be in order, the respondents shall get it processed within a period of two months and the petitioner is directed to deposit the balance 65% of CGST+RGST within a period of three months. Further on the petitioner applying for the refund of the IGST, its accounts attached for the purposes of realizing the disputed amount shall stand released. List this petition alongwith for admission/final disposal after six weeks.