Case Law Details
Gail (India) Limited Vs Directorate General of GST Intelligence (Delhi High Court)
Delhi High Court held that impugned order directing GAIL to pay a sum of money which is not due and payable by GAIL is not sustainable.
Facts- The petitioner (GAIL) has filed the present petition impugning the order dated 08.03.2018 issued by respondent no.1 u/s. 87(b) of Chapter-V of the Finance Act, 1994 read with Section 174(2)(e) of the Central Goods & Services Tax Act, 2017 calling upon GAIL to pay a sum of ₹13,13,07,485/- which, respondent no.1 believes, is owed by GAIL to respondent no.2.
GAIL’s case as set out in the present petition is that it has not admitted that any amount is due and payable to respondent no.2; therefore, there is no question of GAIL making any payment to respondent no.1 on account of any amount due to respondent no.2. Consequently, GAIL cannot be treated as an ‘assessee in default’ as stated in the impugned order dated 08.03.2018.
Conclusion- The order passed by respondent no.1 is in the nature of a garnishee order. Plainly, respondent no.1 cannot compel GAIL to pay any amount which is not due and payable by GAIL to respondent no.2. The impugned order is not open ended and directs GAIL to deposit an ascertained sum of money. In the given facts, it is clear that the impugned order directing GAIL to pay a sum of ₹13,13,07,485/- is not sustainable.
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