Case Law Details
Comsol Energyprivate Limited Vs State of Gujarat (Gujarat High Court)
The Hon’ble High Court, Gujarat in M/S Comsol Energy Private Limited v. State of Gujarat [R/Special Civil Application No. 11905 of 2020 decided on December 21, 2020] allowed the refund claim of Integrated Goods and Service Tax (IGST) paid on ocean freight under the reverse charge mechanism (RCM) beyond the statutory time limit prescribed under Section 54 of the Central Good and Service Tax Act, 2017 (the CGST Act). Held that, the amount collected without authority of law cannot be considered as tax collected and therefore, Section 54 of the CGST Act shall not be applicable. Further, noted that the refund claim was within the time limit prescribed under the Limitation Act, 1963 (the Limitation Act).
Facts:
M/s Comsol Energy Private Limited (“the Writ-Applicant”) filed the refund claims of IGST paid on ocean freight under the RCM after the decision of Hon’ble High Court, Gujarat in Mohit Minerals (Pvt.) Ltd. v. Union of India and others [Special Civil Application No. 726 of 2018 dated January 23, 2020] in which it was held that the Notification No. 8/2017 – Integrated Tax (Rate) dated June 28, 2017, and Entry No. 10 of the Notification No. 10/2017 – Integrated Tax (Rate) dated June 28, 2017, lack legislative competency and the same were declared as unconstitutional.
The Department (“the Respondent”) issued the Deficiency Memo dated July 17, 2020 (“Impugned Deficiency Memo”) upon filing of the refund claims and stated that these were not filed within the statutory time limit under Section 54 of the CGST Act and special category for claiming refund of such amount is not provided by Section 54 of the CGST Act.
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