Taxpayer paid Tax but his supplier reported wrong GSTIN: Madhya Pradesh High Court Allows Claim

The Madhya Pradesh High Court consisting of Justice Vivek Rusia and Justice Hirdesh while allowing the claim held that the taxpayer paid Tax but his supplier reported wrong GSTIN.

BACKGROUND 

The petitioner is a firm engaged in supplying and distributing iron and steel metal scrap. Respondent conducted an e- auction dated 12.08.2017 for the sale of iron and steel material scraps. The petitioner’s bid was found highest and declared the H1 bidder for the lot bearing No.621708013RTM. The petitioner purchased 228 metric tons of scrap MST silver P and C (ORDBG) in a total consideration of Rs.51,97,142/- including the GST of Rs.9,35,486/-.

According to the petitioner, in the month of October 2018 the petitioner came to know that respondent No.1 had committed default in reporting the entries with respect to the purchase made in the e- auction of the petitioner on 12.08.2017, by not reporting the auction sales invoice duly paid by the petitioner in the return under GSTR-1 due to which the auction sale invoice was not reflected in the petitioner’s GSTR-2A. The petitioner sent several representations to the respondent. However, respondent certified the auction sale made by the petitioner and full payment in respect of the auction sale value including GST.

Respondent issued a demand notice to the petitioner demanding input tax with interest, the petitioner submitted a reply on 12.02.2020. In order to avoid the cancellation of GSTIN due to non-payment of the GST charges, the petitioner agreed to repay the requisite GST charges on entries for the year 2017- 18 under protest. The petitioner paid the amount of Rs.6,69,274/- as CGST, Rs.6,69,274/- as SGST i.e. in total Rs.13,38,545/- including interest.

The petitioner deposited the amount of GST as well as interest under protest to the respondent GST hence, there is no recovery of GST against the petitioner.

OBSERVATION

The court directed the respondent to return the amount of Rs.13,38,544/- to the petitioner within 2 months from today. Respondent shall be at liberty to submit a claim before the GST department as the same has been paid by the petitioner and if such claim is submitted, the competent authority of respondent shall decide the same in accordance with the law.

Case Title: Agrawal And Brothers Versus UOI (UNION OF INDIA, WESTERN RAILWAY
DIVISION)

Citation: Writ Petition No. 14297 Of 2020