Tvl. Norton Granites & Properties (P) Ltd Vs Assistant Commissioner (ST) (Madras High Court)
Summary: In the case of Tvl. Norton Granites & Properties Private Ltd. v. Assistant Commissioner (ST), the Madras High Court dismissed the petitioner’s claim for a GST refund. The petitioner, Tvl. Norton Granites, had engaged KG Foundation for construction services and was charged GST at 18%. Believing the applicable GST rate was 5%, the petitioner sought a refund for the excess amount paid. However, the Assistant Commissioner rejected the refund application, stating that only KG Foundation, as the registered service provider, was entitled to file for the refund. The petitioner then filed a writ petition, which was dismissed by the Court. The Court clarified that under the GST framework, the service provider, not the recipient, is responsible for collecting and paying tax on a forward charge basis, making KG Foundation the proper claimant. The Court’s decision reinforced that a recipient of services does not have the legal standing to apply for a refund on taxes paid by the service provider. Thus, the writ petition was dismissed.
Introduction: The Hon’ble Madras High Court in the case of Tvl. Norton Granites & Properties Private Ltd. v. Assistant Commissioner (ST) [Writ Petition No. 13522 of 2024 dated June 12, 2024], held that the refund application for excess tax paid must be filed by the registered service provider, not by the recipient of services. Since M/s KG Foundation was the registered entity, the Assessee’s direct refund claim was deemed invalid. Consequently, the writ petition was dismissed.
