Amounts credited due to a clerical RTGS error cannot be retained or recovered as tax dues

Jai Balaji Industries Limited & Anr. Vs Assistant Commissiioner of Sale Tax & Ors. (Calcutta High Court) In Jai Balaji Industries Limited & Anr. v. Assistant Commissioner of Sales Tax & Ors., the Calcutta High Court held that funds mistakenly transferred due to a clerical RTGS error cannot be treated as tax recoverable from a third party under Section 79 of the CGST/WBGST Act. Jai Balaji Industries had intended to remit ₹20 lakh to a vendor but, due to a typographical error in the account number (ending “8025” instead of “8005”), transferred the amount—along with a ...