Section 74 of the CGST Act, 2017—Demand for CGST+SGST- Taxpayer deposited IGST – The petitioner on the supply of the manpower service, deposited 18% IGST, as it had its office at Delhi/Gurgaon and the service was supplied at Jaipur. The petitioner was served a SCN dated 03.07.2020 for a demand of CGST+RGST under Section 74 along with interest and penalty and further Order dated 20.10.2020 was issued confirming the demand, which was further affirmed by the Appellate Authority on 23.09.2022. The respondent counsel submitted that there is no difficulty for the petitioner to deposit the entire amount, as demanded, and if necessary, it can seek the refund of the IGST in accordance with the provisions of the Act, The court observed that the petitioner has deposited 18% of IGST and that 35% of the CGST+RGST has been recovered by the respondents by attaching the accounts of the petitioner. The issue of inter-state transaction/intra-state transaction is a legal issue, though depending upon the facts of the case and as such, requires deeper consideration.

Held that:- The Hon’ble High Court issued Notice to the respondents to submit their response within a period of one month. Further directed that the petitioner may apply for the refund of the IGST within a period of two weeks and 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. 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 for admission/final disposal after six weeks.