Court Directs Commissioner to Decide on Special Rate Request, Restrains Coercive Actions

The court directed the Commissioner to decide on the petitioner's representations for a special rate within four weeks, restraining coercive actions based on the demand notice until a decision is reached. The petitioner's request for repayment of dues in 14 installments will be considered post-representation disposal. Refundable amounts should also be repaid in equal installments. The case is scheduled to be listed with another petition on 14.07.2021.

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Issues: Challenge of demand notice for refund of excess amount; Special rate entitlement; Pending similar writ petitions; Interim relief sought.

The judgment pertains to a challenge against a demand notice dated 01.01.2021 seeking a refund of an alleged excess amount previously refunded to the petitioner towards excise duties. The petitioner, an industry in Assam, contends that despite being entitled to a special rate for benefits, the authorities have not considered their application for finalizing the same. The petitioner established the industry in Assam based on the cent percent excise duty exemption granted to certain industries in the state. Changes in the exemption rate led to litigation reaching the Hon'ble Supreme Court, which upheld the new fiscal norm under Notification No.20/2008 and subsequent Notification No.38/2008, allowing special rates for benefits to industrial units. The petitioner, aggrieved by the demand notice, filed a writ petition challenging it.

Several similar writ petitions are pending before the Court, claiming relief against such demand notices for refunding amounts released to industries. The Court referred to an interim order in another case directing the Commissioner of CGST to dispose of the petitioner's application for fixation of a special rate within four weeks, prohibiting coercive measures until a decision is made. The petitioner sought similar interim relief in this case, which the Standing Counsel for GST did not object to. Consequently, the Court directed the Commissioner to decide on the petitioner's representations for a special rate within four weeks, restraining any coercive actions based on the challenged demand notice until a decision is reached.

The Standing Counsel for GST mentioned a request from the petitioner to allow repayment of dues in 14 equal installments, which may be considered after the disposal of the petitioner's representation. Any refundable amount should also be refunded in equal installments as per the petitioner's request. The Court scheduled the case to be listed along with another petition on 14.07.2021.

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