Case Law Details
Shapoorji Pallonji And Company Private Limited Vs Union Of India and Others (Andhra Pradesh High Court)
The petitioner undertakes construction of infrastructure projects. It carried out works for State Government. The Government deducted TDS under section 51 of the CGST Act. The said amount was credited to the electronic cash ledger. The petitioner sought refund of Rs.5 crores lying in balance in cash ledger. The same was rejected on the ground of unjust enrichment. It was upheld in appeal. Hence, petition before the High Court. The petitioner submitted that principle of unjust enrichment does not apply to refund of electronic cash ledger in terms of section 49(6) read with section 54 of the Act.
The Hon’ble Andhra Pradesh High Court set aside the order and allowed the writ petition. It held: (i) the orders are, in a sense of speaking, superseded in light of circular dated 17.21.2021 which was issued by the CBIC pursuant to passing of the orders; (ii) remands matter back to the original authority for reconsideration in light of the circular.
The matter was argued by Ld. Counsel Bharat Raichandani
FULL TEXT OF THE JUDGMENT/ORDER OF ANDHRA PRADESH HIGH COURT
The petitioner, who is a registered dealer under the Goods and Services Tax Act, 2017, had accumulated a credit balance in the cash ledger, on account of TDS amounts, from the deductors, being credited to the cash ledger.
2. The petitioner, had thereupon, sought refund of the left over TDS in the cash ledger, after his tax liability was discharged by using ITC available in his ledger.
3. This application of the petitioner, was rejected by the Assessing Authority, by an order, dated 17.10.2019.
4. Aggrieved by the said order of rejection, the petitioner approached the Appellate Authority, who is arrayed as 3rd respondent herein, for setting aside the said order passed by the Assessing Authority and for refund of the accumulated TDS amount.
5. The Appellate Authority, took the view that the finding of the Assessing Authority that, the TDS amount found in the cash ledger is not refunded on the ‘Principle of Unjust Enrichment’ was correct and no refund was permissible to the petitioner.
6. Apart from this ground, the Appellate Authority had also given certain other findings on the basis of which an Appeal was rejected.
7. Aggrieved by the Appellate Order, dated 26.12.2020, bearing Order No.ZH371220OD95299, the petitioner has approached this Court by way of the present Writ Petition.
8. Learned counsel for the petitioner would submit that, the order of the Appellate Authority, is in a manner of speaking, superseded by the circular, issued by the Central Board of Indirect Taxes and Customs, dated 17.11.2021, bearing Circular No.166/22/2021-GST, wherein refund of TDS/TCS amounts deposited in the electronic cash ledger is permissible, in accordance with the proviso to sub-section (1) of section 54, read with subsection (6) of section 49 of C.G.S.T. Act.
9. In view of the submissions, this Court deems it appropriate to dispose of this Writ Petition by setting aside the Order-in-Appeal bearing No.ZH371220OD95299, dated 26.12.2020 and the Order-in-Original bearing No.ZL3710190623900, dated 17.10.2019 and remanding the matter back to the respective respondents for reconsideration in the light of Circular No.166/22/2021-GST.
10. The said exercise to be completed within a period of three (03) months from the date of receipt of a copy of this order.
There shall be no order as to costs.
As a sequel, interlocutory applications pending, if any shall stand closed.
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