Case Law Details
DMI Alternatives Private Limited Vs Additional Commissioner CGST Appeals 1 Delhi & Ors. (Delhi High Court)
The Delhi High Court recently addressed the issue of refund claims for taxes paid under the wrong head and subsequently corrected. In the case of DMI Alternatives Private Limited Vs Additional Commissioner CGST Appeals 1 Delhi & Ors., the court clarified the relevant date for claiming refunds, providing significant insights for taxpayers. This article explores the facts, arguments, and the court’s ruling in detail.
DMI Alternatives mistakenly paid taxes under the wrong head while filing the monthly statement of outward supply in November 2017. The error led to double deposits of tax, once under IGST and then under CGST and SGST. Upon realizing the mistake, DMI Alternatives corrected the error and filed a refund application on 11.05.2020. However, the application was denied due to perceived delay.
The crux of the issue lies in determining the relevant date for claiming refunds. The Circular No. 162/18/2021-GST clarified that the relevant date is when tax is paid under the correct head. Furthermore, if payment under the correct head was made before the circular’s issuance, an additional two-year period from the circular’s date is allowed for filing refund applications.
The court noted that both refund applications filed by DMI Alternatives fell within the scope of the circular. Despite this, the Appellate Authority dismissed the appeal based on the perceived delay, overlooking the circular’s provisions.
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