Refund of excess GST on works contracts must be sought from the recipient entity, not the tax department.

Excess GST paid on works contract services supplied to a housing board was held not refundable from the tax department, because any recoverable amount, if available at all, had to be claimed from the recipient entity. The court noted that the enhanced rate of 18% applied to the relevant services under the later GST notifications, and that the recipient's internal resolution or communication did not create a statutory obligation to sanction refund. The principle reflected in Section 64A of the Sales Tax Act, 1956 supported the view that recovery lay against the Tamil Nadu Housing Board, not against the revenue authorities.

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Issues: Whether the petitioner was entitled to refund of the excess GST paid on works contract services supplied to the Tamil Nadu Housing Board, or whether any refund, if otherwise available, had to be claimed from the recipient entity and not from the tax department.

Analysis: The rate of tax on works contract services rendered to Government entities and authorities was increased to 18% by Notification No.22 of 2021-Central Tax (Rate) with effect from 01.01.2022. The later notification dated 13.07.2022 also governed the relevant category of services from 18.07.2022. The petitioner had paid tax at the enhanced rate for the relevant period and then sought refund of the alleged excess. The impugned refund claim was rejected on the footing that the housing board's internal resolution or communication did not create a statutory obligation on the respondent to sanction refund. The Court accepted that, if any amount was recoverable, the claim lay against the Tamil Nadu Housing Board, consistent with the principle reflected in Section 64A of the Sales Tax Act, 1956.

Conclusion: The refund claim against the respondent was not sustainable, and the petitioner was not entitled to refund from the tax department. Any further recovery, if permissible, was left to be pursued against the Tamil Nadu Housing Board.

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