Dell International Services India (P.) Ltd. Vs Union of India (Madras High Court)
Madras High Court held that accumulated Input Tax Credit available under previous regime which the petitioner was unable to utilise. Thus, tax liability discharged in cash during relevant period is allowed as refund provided equal amount is debited from electronic credit ledger.
Facts- The petitioner was an assessee under the provisions of the Finance Act, 1994 and had reportedly accumulated Input Tax Credit (ITC) for a sum of 82,91,19,712/-. It is the case of the petitioner that the petitioner paid an amount of 86,96,78,402/- towards GST in cash, whereas, an amount of Rs.74, 61,65,427/- out of Rs.82,91,19,712/- (i.e., transitional credit) was available, but, could not be utilized as transitional credit and could not be transitioned immediately at the time of introduction of the GST regime. The petitioner submits that had the transitional credit been made available to the petitioner as on the date of introduction of the GST regime, an amount of 74,61,65,427/- which could have been used to pay tax from its electronic credit ledger and therefore, payment of tax in cash would have reduced to that extent.
Thus, the present writ petition has been preferred seeking for rectification of GSTR-3B from the period from July, 2017, as the petitioner has a huge balance of accumulated credits, which cannot be liquidated in the near future as the business model of the petitioner is predominantly export of services. It is submitted that if the rectification as sought for is allowed, the petitioner would be entitled to a refund of 74,61,65,427/- for the period between July 2017 to November 2017.
