Royal Sundaram General Insurance Co. Limited Vs Union of India (Madras High Court)
Madras High Court held that the coinsurance premium and re-insurance commission would not be considered as supply and hence not liable to pay GST. Thus, amount deposited by petitioners are entitled for refund.
Facts- The present writ petitions are filed under Article 226 of the Constitution of India. The issue involved in these writ petitions pertains to whether the Co-insurance premium and Reinsurance commission would be treated as supply or would be liable to pay the GST.
Notably, petitioners deposited sum as directed by the court. Thus, petitioner contested that the amounts deposited by virtue of this Court order cannot be treated as the amount paid towards the discharge of the tax liabilities and it was paid under protest only. Therefore, he submitted that the said amounts cannot be utilized for the purpose of discharging for payment of tax by the Department immediately upon the deposit. In the event, if the petitioners succeeds, in the absence of any clarification, the said amount would be liable to be refunded. In such being the case, the said amount cannot be considered as the amount paid towards tax. Hence, he requested this Court to issue appropriate directions to re-fund the said amount.
