SRC Projects Private Limited Vs Assistant Commissioner of GST and and Central Excise (Madras High Court)
Madras HC held that amount paid by petitioner on reverse charge basis during transition to GST regime is allowed as recredit as Input Tax Credit in Electronic Credit Ledger. Accordingly, petition allowed.
Facts- The petitioner has preferred the present writ petition against impugned order whereby the request of the petitioner to allow re-credit of the amount of tax paid by the petitioner on reversed charged basis as recipient of royalty services from the Government has been rejected stating that Section 142(3) of the Central Goods and Sales Tax (CGST) Act, 2017 would not come to the rescue of the petitioner.
Conclusion- Held that it is evident that although the petitioner was not entitled to cash refund under Section 142(3) of CGST Act, 2017, the petitioner is entitled to recredit by virtue of the aforesaid Order. Also held that decision of the Jharkand High Court in M/s. Rungta Mines Limited Vs. The Commissioner of Central Goods & Services Tax and Central Excise, Jharkhand couldn’t be applied in the present case. Thus, the respondent is directed to allow the petitioner to take recredit of the amount paid by the petitioner on reverse charge basis belatedly on 30.12.2017 as the Input Tax Credit in its Electronic Credit Ledger.
