GST on bio-medical waste treatment services upheld as lawful, defeating refund claim and confirming taxable classification.

GST paid for running, maintenance, treatment and disposal services at a bio-medical waste treatment facility was treated as lawfully payable because the taxing authority clarified that the work fell within the taxable service entries under the applicable GST notifications. On that basis, the payment could not be treated as an erroneous levy refundable to the hospital, and the refund direction was quashed. The hospital was also directed to clear the petitioner's pending bills.

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Issues: Whether the petitioner's GST payment for running, maintenance, treatment and disposal services relating to the bio-medical waste treatment facility was legally payable and whether the order directing refund of the GST amount could be sustained.

Analysis: The counter affidavit filed by the taxing authority clarified that the petitioner's work fell within the taxable service entries under Notification No. 11/2017-State Tax (Rate) and that the services relating to bio-medical waste treatment and disposal were covered by the specified classification. The record also referred to Notification No. 12/2017-State Tax (Rate), but the clarification furnished by the authority supported the conclusion that the petitioner's GST payment was made in accordance with law and could not be treated as an erroneous payment liable to be refunded to the respondent hospital.

Conclusion: The GST payment was held to be valid and lawful, and the direction requiring refund of the GST amount was quashed. The respondent hospital was also directed to process and pay the pending bills of the petitioner.

Ratio Decidendi: Where the competent tax authority clarifies that the services rendered are taxable under the applicable GST notifications, the recipient cannot compel the service provider to refund GST paid in accordance with law.

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