GST recovery from tax ledger remanded; supplier remained bound to pay the outstanding tax liability on supplies.

Recovery from a tax ledger under a GST assessment was held liable to reconsideration where the record showed substantial payment or acknowledgment of the disputed tax, but the balance liability remained unresolved; the appellate order was set aside and the matter remanded, with recredit of the recovered amount to the petitioner's credit ledger. The supplier's payment obligation was treated as statutory, and the supplier was directed to discharge the outstanding GST/IGST liability arising from the supplies made, unless already paid. The writ petition thus succeeded to that extent, combining remand on the recovery issue with enforcement of the supplier's tax liability.

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Issues: (i) Whether the appellate order sustaining recovery from the petitioner's tax ledger required interference and remand; (ii) whether the supplier could be directed to discharge the outstanding GST/IGST liability arising from the supplies made to the petitioner.

Issue (i): Whether the appellate order sustaining recovery from the petitioner's tax ledger required interference and remand.

Analysis: The recovery was made in connection with an assessment under Section 73 of the Central Goods and Services Tax Act, 2017 and the West Bengal Goods and Services Tax Act, 2017, but the record showed that a substantial part of the disputed tax had already been paid or acknowledged, while the remaining amount was still not fully accounted for. In these circumstances, the appellate order was found liable to be revisited.

Conclusion: The appellate order was set aside and the matter was remanded to the appellate authority, with direction to recredit the amount already recovered to the petitioner's credit ledger.

Issue (ii): Whether the supplier could be directed to discharge the outstanding GST/IGST liability arising from the supplies made to the petitioner.

Analysis: The supplier admitted belated payment of part of the amount and acknowledged supplies made to the petitioner. The Court treated the supplier's payment obligation as a statutory one and held that the supplier could not avoid liability merely because the tax consequence had been visited upon the petitioner.

Conclusion: The supplier was directed to pay the outstanding GST/IGST amount unless already paid.

Final Conclusion: The writ petition succeeded to the extent of setting aside the appellate order and securing recredit of the recovered amount, while the supplier was left under a direction to clear the balance tax liability.

Ratio Decidendi: Where the material record shows partial payment or acknowledgement of the disputed tax and the remaining liability is not fully resolved, an appellate order sustaining recovery may be set aside and the matter remanded, while the supplier who made the supplies remains bound to discharge the statutory GST/IGST liability.

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