2022 (9) TMI 373

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....Solutions Private Limited as Petitioner. 2. Petitioner has been carrying on business of advertising and providing advertising solutions to various parties. Petitioner submitted a bid in response to a tender floated by Respondent No.1 through Respondent No.6. Petitioner's bid was accepted and a Letter of Acceptance dated 16th July 2014 was issued to Petitioner by Respondent No.6 on behalf of Respondent No.1. Clause 2.14 of the General Conditions of Contract (GCC) provided for payment of service tax. It says "As & when it is notified for collection of service tax on commercial publicity contracts on railways, the contractor should pay the service tax at the applicable rates on the license fee to the Railway Administration". Petitioner was ....

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.... authorities, i.e., 9% to the Central Government and 9% to the State Government. To cut the matter short, this is where the problem of Petitioner arose and Petitioner approached this Court for appropriate relief. 7. Respondent No.5, through one Manika Jaiswal, has filed Affidavit-in-Reply, affirmed on 1st August 2022. In the Affidavit-in-Reply, Respondent No.5 admits that Petitioner had paid the tax amounts to Railways. The stand taken by Respondent No.5, however, is that as per the provisions of Section 9 (3) of CGST/SGST Act, 2017 and Section 5(3) of the IGST Act, 2017 the tax payable by the recipient of the goods or services or both, as was applicable in the case at hand, shall be paid on reverse charge basis. 8. Learned ASG submit....

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....etitioner has paid the amount wrongly to Railways and due to huge Railway network, Railway was not in an immediate administrative position to check and react to such wrongful deposits. 11. We, therefore, direct Respondent No.5 to ensure that the amounts which have been wrongly paid by Petitioner to Railways should be paid to the CGST authorities and SGST authorities within two weeks from today.   12. We also hope that in view of the unusual facts and circumstances of this case, the CGST authorities and SGST authorities would consider Petitioner's case sympathetically when it comes to interest and penalty. Unless they have some other reason, Petitioner should not be saddled with interest and penalty. 13. As and when Railway dep....