High Court decided not to interfere on issue of leviability of GST @12% or 18% at investigation stage

GTS Coal Sales, through its Proprietor Vs The Directorate General of Goods & Services Tax Intelligence (Jharkhand High Court)

Jharkhand High Court decided not to interfere on issue of leviability of tax on work of transportation of coal under GTA services leviable at 12% under Chapter Heading No. 9965 or 18% under Chapter Heading No. 9986 at the investigation stage.

Facts-

A search was carried out in the office premises of the petitioner [W.P.(T)No. 1539 of 2021] and as alleged, upon threat of coercion, the petitioner involuntarily deposited an amount of Rs. 60 lakh under protest purportedly under Section 73 (5) of the Central Goods and Services Tax Act (CGST), 2017. Similar, search was also carried out at the business premises of the petitioner [W.P.(T)No. 14 of 2021] and was forced to deposit Rs. 47,64,900/- involuntarily u/s. 73 (5) of the CGST Act, 2017.

The main grievance is that the respondent- BCCL issued from time to time work orders for the execution of the work about ‘Transportation of Coal’ and after the implementation of the GST regime, both the petitioners were issued work orders wherein Respondent- Coal Company classified the said works as under ‘GTA Services’ and provisions have been made for reimbursement of the amount of GST in the said work order only to the extent of 12%.

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