Ocean E Mart Vs State of U.P (Allahabad High Court)
The writ petition was filed under Article 226 of the Constitution seeking quashing of an order dated 27.01.2024 passed under Section 73 read with Section 161 of the GST Act for Assessment Year 2018–19. The petitioner challenged the demand raised on the ground of alleged non-payment of IGST and sought directions to allow adjustment of tax already paid under CGST and SGST, along with refund of excess payment and interest.
The petitioner contended that the tax liability was required to be discharged under IGST but, due to a mistake, the entire amount was deposited under CGST and SGST. This error was brought to the notice of the authority under Section 73(3) of the GST Act. It was argued that when the payments under CGST and SGST are considered, the petitioner had paid more than the IGST liability and was, in fact, entitled to a refund. Reliance was placed on a judgment of the Kerala High Court supporting such adjustment.
The respondents submitted that there was no statutory mechanism to transfer tax paid under CGST and SGST to IGST, though it was fairly conceded that the tax appeared to have been paid under the wrong head.
