United Breweries Limited Vs Joint Commissioner of GST and Central Excise (Appeals II) (Madras High Court)
In the recent judgment Hon’ble Madras HC allowed writ petition to claim refund under the category of Excess payment on tax which was paid by the petitioner on holographic stickers affixed on beer bottles
Petitioner is engaged in manufacturing of Beer. It has to affix a holographic sticker on each bottle to ensure that no spurious liquor is sold in the market and payment of State Excise on every bottle. It is the case of the petitioner that the “holographic stickers” purchased from the Prohibition and Excise Department was supply of goods and not service and therefore not liable to tax in terms of Notification No.13/2017 Central Tax (Rate) dated 28.06.2017. Petitioner claimed refund under the category of “Excess payment of Tax” for the period April 2018 to February 2020 under Rule 92(3) of the CGST Rules, 2017 read with Section 54 of the CGST Act, 2017. The said claim of the petitioner was rejected by the original authority. Appeal against the order-in-original was also dismissed. Order-in-appeal was subject matter of challenge in the writ petition.
Petitioner submitted that it was under a bona fide belief that it was liable to pay tax on the “holographic stickers” on Reverse Charge Basis (RCB) in terms of Section 9(3) of the respective GST enactments of 2017 read with Notification No.13/2017 Central Tax (Rate) dated 28.06.201. Service by way of grant of alcoholic liquor licence, against consideration in the form of license fee or application fee in which it is engaged as public authorities shall be treated neither as a supply of goods nor a supply of service in terms of Notification No.25/2019 – Central Tax (Rate) dated 30.09.2019. Tax paid on Reverse Charge Basis (RCB) pursuant to Notification No.13/2017, was a mistake and therefore the petitioner was entitled to refund under Section 54 of the respective GST enactment of 2017. Alternatively, purchase of “holographic sticker” is part of the “composite supply” of goods or services, it has to be exempted in terms of Section 8(a) of the respective GST Enactments.
