Voluntary Tax Deposit Under GST Section 73(5) Cannot Be Refunded Before Adjudication of Demand HC dismissed the petition seeking refund of Rs. 25,00,000 collected by tax authorities. The petitioner had voluntarily deposited Rs. 50,00,000 under ...
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Voluntary Tax Deposit Under GST Section 73(5) Cannot Be Refunded Before Adjudication of Demand
HC dismissed the petition seeking refund of Rs. 25,00,000 collected by tax authorities. The petitioner had voluntarily deposited Rs. 50,00,000 under Section 73(5) of CGST Act, 2017, as reflected in the DRC-03 receipt. The court found no grounds to order refund at this stage, noting the petitioner's admission of liability in a voluntary statement. Respondents were directed to expeditiously issue notice under CGST Act for adjudication of the demand on merits.
Issues: 1. Petition for refund of amount collected by respondents. 2. Voluntary deposit by petitioner under Section 73(5) of CGST Act, 2017. 3. Adjudication notice under relevant provisions of CGST Act, 2017.
Analysis: 1. The petitioner filed a writ petition seeking a mandamus directing respondent nos. 2 and 3 to refund Rs. 25,00,000 along with interest, collected on 09.04.2021, which was allegedly done illegally and without authority of law. The petitioner had voluntarily deposited Rs. 50,00,000 on the same date as per the DRC-03 document. The Senior Standing Counsel for respondent nos. 2 and 3 argued that the petitioner admitted his liability to deposit around Rs. 50,00,000 in his voluntary statement on 09.04.2021. The court noted that the amount deposited voluntarily by the petitioner under Section 73(5) of the CGST Act, 2017, was reflected in the receipt. Consequently, the court found no reason to order a refund at this stage and dismissed the writ petition.
2. The Senior Standing Counsel for respondent nos. 2 and 3 informed that a notice under the relevant provisions of the CGST Act, 2017, would be issued to the petitioner for adjudication of the case on merit. The court directed the respondents to issue any such notice expeditiously for the adjudication of the demand. Therefore, while the petition for refund was dismissed, the matter was directed for further adjudication under the CGST Act, 2017.
3. In conclusion, the court dismissed the writ petition seeking a refund of the amount collected by the respondents, as the voluntary deposit made by the petitioner was acknowledged and reflected in the records. The court also directed the issuance of a notice to the petitioner for the adjudication of the demand under the relevant provisions of the CGST Act, 2017.
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