It is appropriate to remit the matter back to the concerned appellate authority.
Section 77 of the CGST Act, 2017 — Refund of Tax wrongly collected and paid– The petitioner challenged order dated 25.06.2021 passed by Appellate authority, whereby the appeal preferred against the order dated 23.04.2020 has been dismissed. The Petitioner filed a refund claim of Rs. 12,69,255/-, on account of Excess payment of IGST in February, 2018 in GSTR 3B Return for the tax period February, 2018 in RFD-01. The respondent issued a SCN dated 31.03.2020 and then the same was confirmed by the adjudicating authority vide order dated 23.04.2020. The appellate authority rejected the refund claim on the ground that a refund in terms of Section 77 would arise only when a supply is considered as intra-State supply is so held by any authority subsequently. The petitioner submitted that vide circular dated 25th September, 2021, word “subsequently held” has been clarified. The court observed that a refund in terms of Section 77 of CGST Act, 2017 and Section 19 of the IGST Act, 2017 would arise only when a supply considered as intra-State supply is so held by any authority as inter-State supply or where a supply considered inter-State. Further, the circular dated 25.09.2021 has interpreted and/or clarified the word “subsequently held”, it would, be appropriate to remit the matter back to the concerned Appellate Authority.
Held that:- The Hon’ble High Court set aside the order impugned and remitted the matter back to the concerned appellate authority with a direction to decide the same afresh in the light of the circular issued on 25th September, 2021 in accordance with law.
It is appropriate to remit the matter back to the concerned appellate authority.
Section 77 of the CGST Act, 2017 — Refund of Tax wrongly collected and paid– The petitioner challenged order dated 25.06.2021 passed by Appellate authority, whereby the appeal preferred against the order dated 23.04.2020 has been dismissed. The Petitioner filed a refund claim of Rs. 12,69,255/-, on account of Excess payment of IGST in February, 2018 in GSTR 3B Return for the tax period February, 2018 in RFD-01. The respondent issued a SCN dated 31.03.2020 and then the same was confirmed by the adjudicating authority vide order dated 23.04.2020. The appellate authority rejected the refund claim on the ground that a refund in terms of Section 77 would arise only when a supply is considered as intra-State supply is so held by any authority subsequently. The petitioner submitted that vide circular dated 25th September, 2021, word “subsequently held” has been clarified. The court observed that a refund in terms of Section 77 of CGST Act, 2017 and Section 19 of the IGST Act, 2017 would arise only when a supply considered as intra-State supply is so held by any authority as inter-State supply or where a supply considered inter-State. Further, the circular dated 25.09.2021 has interpreted and/or clarified the word “subsequently held”, it would, be appropriate to remit the matter back to the concerned Appellate Authority.
Held that:- The Hon’ble High Court set aside the order impugned and remitted the matter back to the concerned appellate authority with a direction to decide the same afresh in the light of the circular issued on 25th September, 2021 in accordance with law.