Case Law Details
Media Net Software Services (India) Pvt Ltd Vs Union of India & Ors (Bombay High Court)
In a recent decision, the Bombay High Court ruled in the case of Media Net Software Services (India) Pvt Ltd Vs Union of India & Ors that CGST and SGST paid on export transactions cannot be retained by state authorities and the refund for the same cannot be refused. This ruling followed the consideration of previous judgments regarding the jurisdiction of respective authorities under the IGST Act and CGST/MGST Act.
The case concerned the levying of taxes on the export of service, which the petitioner contended fell under the purview of IGST Tax, a jurisdiction of Central Authorities, not the State Authority. The case drew on precedents from earlier cases – Dharmendra M. Jani Vs. The Union of India & Ors. and A.T.E. Enterprises Pvt. Ltd. Vs. The Union of India & Ors.
The petitioner had been required to deposit tax on the export transaction with authorities under the CGST Act and the MGST Act. They had taken a clear stand that such authorities did not have jurisdiction to demand any tax on export of service. The petitioner had also filed for a refund of tax deposited, which had been rejected.
Given the current position in law, the Bombay High Court held that the CGST/MGST authorities did not have jurisdiction to retain such amount of tax on export transactions. Therefore, such amounts were required to be transferred to the Central Government.
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