2018 (11) TMI 954 – KERALA HIGH COURT – 2018 (19) G. S. T. L. 385 (Ker.) – Release of detained goods – remittance of amount under the head 'SGST', instead of 'IGST' – Held that:- The petitioner, as a consignee and transporter, purchased goods from the consignor in Chennai. While those goods were in transit, they were detained. Further not in dispute is the fact that the consignor paid the tax and penalty. Either on the ASTO's advice or on its own, it remitted the amount under the head 'SGST', instead of 'IGST' – Section 77 provides for the refund of the tax paid mistakenly under one head instead of another. But Rule 4 speaks of adjustment. Where the amount of refund is completely adjusted against any outstanding demand under the Act, an order giving details of the adjustment is to be issued in Part A of FORM GST RFD-07.
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There is no difficulty for the respondent officials to allow the petitioner's request and get the amount transferred from the head 'SGST' to 'IGST' – goods alon
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to release the goods. Aggrieved, the petitioner has filed this writ petition. 4. The petitioner's counsel has drawn my attention to Section 77 of the GST Act and also Rule 4(1) of the GST Refund Rules, 2017, especially the proviso appended to the Rule. To hammer home his contentions that even if the remittance were to treated as a mistake on the consignor's part, the statute empowers the authorities to transfer the deposit from one head to another: from SGST to IGST. 5. The Government Pleader, on the other hand, submits that the petitioner could as well pay the amount under 'IGST' and then claim a refund from the head 'SGST'. According to her, if the authorities have to go for an adjustment, it will take more than a couple of months. 6. Heard the learned counsel for the petitioner as also the Government Pleader. 7. I reckon the facts are not in dispute. The petitioner, as a consignee and transporter, purchased goods from the consignor in Chennai. While those go
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st on the amount of central tax and State tax or, as the case may be, the central tax and the Union territory tax payable. 8. We may as well examine Rule 4(1) of the GST Refund Rules, for much turns upon it. And it reads: 4. Order sanctioning refund (1) Where, upon examination of the application, the proper officer is satisfied that a refund under sub-section (5) of section 54 is due and payable to the applicant, he shall make an order in FORM GST RFD-06, sanctioning the amount of refund to which the applicant is entitled, mentioning therein the amount, if any, refunded to him on a provisional basis under sub-section (6) of section 54, amount adjusted against any outstanding demand under the Act or under any existing law and the balance amount refundable: PROVIDED that in cases where the amount of refund is completely adjusted against any outstanding demand under the Act or under any existing law, an order giving details of the adjustment shall be issued in Part A of FORM GST RFD-07. (
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