Refund of GST penalty as per Appellate Authority Order

[K.lakshmipati rao]

Preamble- Our Company in Hyderabad also having branch in the state of Rajasthan and got Registered under the GST Act. Basis customer requirement of goods/Machine to be supplied to Goa, our Rajasthan Branch has placed indent on Original Equipment Manufacturer-OEM to supply the Machine from their Factory in West Bengal, directly to be transported to Goa, under Bill to (our Company branch in Rajasthan) Ship to (ultimate buyer in GOA) Model.

While the Machine was in transit, it got intercepted by the Deputy State Tax Officer, Khammam II Circle on 21.09.2024 at Khammam in Telangana State and issued detention order stating that the goods under transit were without proper documentation, proposing a levy penalty @ 200% of the tax amount which amounts to Rs.10,80,000/- under the IGST Act, 2017. Upon payment of Penalty @200% under IGST Act, the vehicle carrying the Machine was released and subsequently issued DRC-07 (Manual), however, Form DRC-07 was not uploaded on the GST portal, and the Order was served on us physically. Consequently, we were advised to file the appeal manually in Form GST APL–01 [See Rule 108(1)], Appeal to the Appellate Authority, Secunderabad, Telangana State.

Accordingly, the appeal was filed manually in Form GST APL–01, which was acknowledged by the Appellate Authority. Just recently, the matter has been disposed, and appeal Order has been issued, modifying the Penalty amount to Rs. 20,000/-. Thereby, now we are entitled to get Refund of Rs. 10,60,000/- under the IGST Act, 2017 [i.e. Rs.10,80,000/- (-) Rs.20,000/-].

The issue involved herein is that the appeal Order has been issued manually by the Appellate Authority, Secunderabad, Telangana State, as such, our Company branch in Rajasthan, as to how it can claim the Refund under IGST Act.

I request the experts to suggest the way forward in the matter.

AI Summary

Claim Rs 10.6 lakh GST refund after manual appellate order not uploaded: file Form RFD-01 with scanned order A taxpayer whose branch placed an order for goods to be shipped interstate had the consignment detained and was levied a 200% IGST penalty, paid, and later successfully appealed to reduce the penalty to Rs.20,000, creating an entitlement to a Rs.10,60,000 refund. The appellate order was issued manually and not uploaded to the GST portal. The practical remedy is to file the refund application in Form RFD-01, attaching a scanned copy of the manual appellate order; if the portal rejects 'refund against order' due to non-availability online, file under the 'refund - others' category with the scanned order.