Artificial inflation of balance of CGST and SGST due to appropriation of IGST credit.

Last updated: 13 February 2021

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Quick Summary

This case concerns the artificial inflation of Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) balances. The petitioner sought to quash a customs notification and a trade notice, arguing that importers should not be required to pay Integrated Goods and Services Tax (IGST) in a manner that leads to this imbalance. The court was asked to consider refunding a significant amount of tax paid with interest.

Court :
Gujarat High Court)

Brief :
By this writ application under Article226 of the Constitution of India, the writ applicants have prayed for the following reliefs:

Citation :
Appeal Number : Special Application No. 20759 of 2018

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 20759 of 2018

M/S RADHESHYAM SPINNING PVT LTD
Versus
UNION OF INDIA

Appearance:
KUNTAL A PARIKH(7757) for the Petitioner(s) No. 1,2
MR DEVANG VYAS(2794) for the Respondent(s) No. 1
MR DHAVAL D VYAS(3225) for the Respondent(s) No. 3
NOTICE SERVED(4) for the Respondent(s) No. 2,4,5

CORAM: HONOURABLE MR. JUSTICE J.B.PARDIWALA
and
HONOURABLE MR. JUSTICE ILESH J. VORA

Date : 29/01/2021

ORAL ORDER

(PER : HONOURABLE MR. JUSTICE J.B.PARDIWALA)

1. By this writ application under Article226 of the Constitution of India, the writ applicants have prayed for the following reliefs:

( a) That this Honorable Court be pleased to quash and set aside Notification no.26/2017Custom, dated 29.06.2017 annexed as ‘Annexure F’ to the extentamending Notification no.16/2015Customs, dated 01.04.2015, annexed as ‘Annexure – B’; and

(b) That this Honorable Court be pleased to quash and set aside Trade Notice 11/2018, dated 30.06.2017issued by the Respondent No.2, annexed as‘Annexure – G’, to the extent it is stated thereinunder Chapter 5 that importers would need to pay IGST; and

(c) That this Honorable Court be pleased to grant refund of Rs.3,37,79,196/- and interest at the rate of 24% thereon; and (d)Ex parte ad-interim relief in term of Prayer 9(c) be granted; and

(e) For Costs; and

(f) That this Honorable Court be pleased to grant such other and further relief/s as are deemed just and proper in the facts and circumstances of this case.

To know more in details find the atatchment file