Varshan Enterprises Vs Office of the GST Council (Andhra Pradesh High Court)
Rule 97A permits manual application for refund of GST paid wrongly
The Hon’ble Andhra Pradesh High Court in M/s. Varshan Enterprises v. Office of the GST Council [Writ Petition No.10637 of 2021, dated December 12, 2022] held that the Revenue Department cannot retain any amount that has been paid as tax as a result of any inadvertent error and the error committed by the assessee being accidental shall have the opportunity to rectify it.
Facts:
M/s. Varshan Enterprises (“the Petitioner”) is involved in the business supplying telecom pipe-laying services in Telangana and had provided its services to M/s Vodafone Mobile Services Limited with office located in Telangana (“Vodafone, Telangana”). M/s Vodafone Mobile Services Limited also has an office in Mumbai, Maharashtra (“Vodafone, Mumbai”). The Petitioner erroneously issued two tax invoices in June, 2018 to Vodafone, Mumbai instead of Vodafone, Telangana, by entering the GSTIN of Vodafone, Mumbai, while entering the details and returns information on the GST common portal. Due to such error, Vodafone, Telangana was unable to claim the Input Tax Credit (“ITC”) on the IGST paid by the Petitioner.
However, the Petitioner tried to rectify its mistake in May, 2020 but it was available for rectification only up to October 20, 2019. The Petitioner vide letter dated February 2, 2021 requested the Revenue Department (“the Respondent”) to either refund the amount or adjust the same with existing liabilities. In reply, The Respondent directed the Petitioner to adhere to the process specified in Circular CBEC-20/16/04/18-GST, dated November 18, 2019 (“the Circular”).
The Respondent contended that the Petitioner’s claim was time-barred by limitation because it violated Section 54 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) which set a two-year limitation period.
Issue:
Whether the Respondent was correct in denying the rectification of the details and the refund amount, under Section 54 of the CGST Act which erroneously paid by the Petitioner?
Held:
The Hon’ble Andhra Pradesh High Court in Writ Petition No.10637 of 2021 held as under:
