Kerala High Court
Jafar Karakkunnel Arshal vs Deputy Commissioner on 6 September, 2024
Author: P Gopinath
Bench: P Gopinath
2024:KER:67826
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE GOPINATH P.
FRIDAY, THE 6TH DAY OF SEPTEMBER 2024 / 15TH BHADRA, 1946
WP(C) NO. 24033 OF 2024
PETITIONER/S:
JAFAR KARAKKUNNEL ARSHAL,
PROPRIETOR, SPACE ENGINEERS & CONTRACTORS,
PINAYIL TOWER, NEAR EEC MARKET, BYEPASS ROAD,
KEECHERIPPADY, MARKET P.O., MUVATTUPUZHA,
ERNAKULAM DISTRICT, PIN - 686673
BY ADV TOMSON T.EMMANUEL
RESPONDENT/S:
1 DEPUTY COMMISSIONER,
CENTRAL TAX & CENTRAL EXCISE, PERUMBAVOOR DIVISION,
G-ARCADE, THOTTUMKAL ROAD, PERUMBAVOOR,
ERNAKULAM DISTRICT, PIN - 683542
2 COMMISSIONER (GST),
GOVERNMENT OF INDIA, MINISTRY OF FINANCE,
DEPARTMENT OF REVENUE, CENTRAL BOARD OF INDIRECT TAXES
AND CUSTOMS,
GST POLICY WING, NEW DELHI, PIN - 110001
3 CENTRAL BOARD OF EXCISE AND CUSTOMS,
DEPARTMENT OF REVENUE, NEW DELHI,
REPRESENTED BY ITS SECRETARY TO GOVERNMENT,
MINISTRY OF FINANCE, PIN - 110001
4 GOODS AND SERVICES TAX NETWORK PVT. LTD.,
EAST WING, 4TH FLOOR, WORLD MARK - 1, AEROCITY,
NEW DELHI,
REPRESENTED BY ITS MANAGING DIRECTOR, PIN - 110037
BY ADV A.K.PREETHA- SC
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON
06.09.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
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WP(C) NO. 24033 OF 2024 2
JUDGMENT
Petitioner has approached this Court, being aggrieved
by the fact that Ext,P8 application filed by the petitioner for
refund of certain amounts paid erroneously as tax has been
rejected by Ext.P11 order on untenable grounds.
2. It is the case of the petitioner that in the month of
January- 2024, the petitioner had issued two invoices for a total
value of Rs.42,27,999.63 and the tax liability of Rs.3,80,519.96
as CGST and Rs.3,80,519.86 as SGST was declared in GSTR-I,
the same was also reflected in GSTR 3B for the month of
January 2024. It is the case of the petitioner that the
petitioner received Rs.25,00,000/- (Rupees Twenty five lakhs
only) as part-payment in respect of the aforesaid invoices and
by mistake, the same was shown as advance payment in GSTR-I
for February, 2024 also and an amount of Rs.1,90,677.97 as
CGST and Rs.1,90,677.97 as SGST was again paid. In other
words, it is the case of the petitioner that, in respect of amounts
for which tax had already been remitted, further amounts were
remitted as tax. According to the petitioner, the mistake was
rectified by filing an amended return as per Ext.P4. In Ext.P11
order, it is seen that the reason for rejecting the refund
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application is recorded as follows:-
''I have gone through the refund claim, Ledger
Account of M/s. Lakshmi Living Spaces Pvt Ltd for the
period 01-04-2023 to 31-03-2024, Invoice No. SEC/23-24/02
Dated 15-01-2024, Invoice No. SEC/23-24/03 dated 27-01-
2024 issued to M/s. S L Living Spaces [P] Ltd and Receipt
Voucher No. 20 & 21 dated 03-02-2024 and other
supporting documents furnished by them. The claimant has
filed a claim for refund of Rs. 3,81,355.94/- (IGST as NIL,
CGST Rs. 1,90,677.97/- & SGST Rs. 1,90,677.97/- on 08-05-
2024. The claim was verified with Electronic Cash Ledger
and it has been seen that a amount in Electronic Cash
Ledger with Debit Entry DC3203240092175.
Reply to Show Cause Notice has been filed by the
Tax Payer in Form GST RFD-09, ZD3206240103406 dated
25-05-2024. There also the Taxpayer has re-iterated the
points as same submitted in document in the Personal
Hearing dated 20-06-2024.
I carefully considered the RFD-01 vide ARN
AA320524005371V Dated: 08- 05-2024 for the refund of Rs.
3,81,355.94/- (IGST as NIL, CGST Rs. 1,90,677.97/- & SGST
Rs. 1,90,677.97/-) paid under the category of Any
Other[Specify] on the payment in GSTR-3B for February-
2024, and found that the tax payer's refund request is not
sustainable and hereby rejected with the following reasons;
1 The value of Invoice issued during January-
2024, advanced received during February
2024 and GSTR-1 are not at all matching.
2 No correlation between GSTR-1 and GSTR-3B
for the month of February-2024.
3 No correlation between GSTR-1 and GSTR-3B
for the month of March-2024.
4 There is no sufficient reasons supporting the
payment are to be considered as excess
payment.
Accordingly, I pass the following Order.
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ORDER
I hereby reject an amount of Rs. 3,81,355.94/-
(IGST as NIL, CGST Rs. 1,90,677.97/- & SGST Rs.
1,90,677.97/-) to Sri. Jafar Karakkunnel Arshal, M/s. Space
Engineers & Contractors, VI/120 A, First Floor, Painayil
tower, EEC Market Bypass Road, Muvattupuzha, PIN-686
673 having GSTIN-32AQZPA1785F1ZQ, as per sub-section
(1) of section 54 read with rule 90[4] of the Central Goods
and Services Tax Rules, 2017.
With the above, the Show Cause Notice No.
19/2024 dated 11-06-2024 is disposed of.''
3. The learned Standing Counsel appearing for the
respondents would submit that while rejecting the refund claim
of the petitioner, it is seen that the officer had taken the view
that the petitioner could not receive any advance payment
after the supply of goods in the month of January, 2024.
However, this reasoning adopted by the Officer does not take
into consideration the fact that the petitioner has a case that
the description of the amount received in February, 2024, as an
advance, is actually a mistake and the same was also rectified
by filing an amended return as can be seen from Ext.P4. This
aspect of the matter does not appear to have been considered
by the officer while passing Ext.P9 order.
Accordingly, Ext.P9 is quashed. The refund application
of the petitioner shall be reconsidered by the competent among
the respondents, after affording an opportunity of hearing to
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the petitioner. The orders as aforesaid shall be passed within a
period of two months from the date of receipt of a certified copy
of this judgment.
Sd/-
GOPINATH P. , JUDGE
ajt
2024:KER:67826
APPENDIX OF WP(C) 24033/2024
PETITIONER EXHIBITS
Exhibit P1 TRUE COPY OF TAX INVOICE NOS.SEC/23-24/02
DATED 15.01.2024 AND SEC/23-24/03 DATED
27.01.2024 ISSUED BY THE PETITIONER TO M/S.SL
LIVING SPACE PVT. LTD; BANGALORE.
Exhibit P2 TRUE COPY OF GSTR-1 DATED 09.02.2024
SUBMITTED FOR THE MONTH OF JANUARY 2024.
Exhibit P3 TRUE COPY OF GSTR-3B RETURN DATED 19.02.2024
SUBMITTED FOR THE MONTH OF JANUARY 2024.
Exhibit P4 TRUE COPY OF GSTR-1 DATED 11.03.2024
SUBMITTED FOR THE MONTH OF FEBRUARY 2024.
Exhibit P5 TRUE COPY OF GSTR-3B RETURN DATED 20.03.2024
SUBMITTED FOR THE MONTH OF FEBRUARY 2024.
Exhibit P6 TRUE COPY OF GSTR-1 DATED 13.04.2024
SUBMITTED FOR THE MONTH OF MARCH 2024.
Exhibit P7 TRUE COPY OF GSTR-3B RETURN DATED 18.04.2024
SUBMITTED FOR THE MONTH OF MARCH 2024.
Exhibit P8 TRUE COPY OF REFUND APPLICATION IN FORM GST-
RFD-01 SUBMITTED UNDER ONLINE
Exhibit P9 TRUE COPY OF NOTICE DATED 11.06.2024 ISSUED
BY 1ST RESPONDENT, IN PROPOSING TO REJECT EXT
P8 APPLICATION UPLOADED ON 12.06.2024 ISSUED
WITH FORM GST-RFD-08.
Exhibit P10 TRUE COPY OF REPLY DATED 20.06.2024 SUBMITTED
AGAINST EXT P9 UPLOADING THE REPLY ON
25.06.2024 UNDER FORM GST-RFD-09.
Exhibit P11 TRUE COPY OF SANCTION ORDER IN FORM GST RFD-
06 DATED 27.06.2024 UPLOADED IN THE ONLINE
SITE ON 28.06.2024 BY 1ST RESPONDENT, IN
REJECTING EXT P8 APPLICATION FOR REFUND.
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Exhibit P12 TRUE COPY OF JUDGMENT DATED 22.07.2020 PASSED
BY THE DIVISION BENCH OF THE HON'BLE HIGH
COURT OF DELHI IN WP© NO.4205 OF 2020 IN JIAN
INTERNATIONAL VS COMMISSIONER OF DELHI GOODS
AND SERVICES TAX.
RESPONDENT ANNEXURES
Annexure R1(a) True copy of Screenshots of GST Back end
Portal for RFD-02
