TaxTMI 
TaxTMI 
TaxTMI 
2024 (5) TMI 511
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....h and North East including Sikkim dated 05.10.2017 (the Budgetary Support Scheme) has led to the present litigation. 2. The question which seeks determination in the present writ petition is whether the budgetary support claimed by the petitioner for the month of July 2017 and August 2017 separately in their initial applications ought to have been favourably considered by the Assistant Commissioner, Central Goods & Service Tax (respondent no. 3) although as per the respondent no. 3 the Budgetary Support Scheme envisaged working it out on a quarterly basis on claims to be filed on quarterly basis. 3. The learned counsel for the petitioner submits that there was a violation of principles of natural justice as the same has been passed without granting any opportunity of personal hearing to the petitioner. The Budgetary Support Scheme provides the manner in which the claims can be made and determined. The initial orders of rejection passed by the respondent no. 3 had been set aside by this Court and thereafter, the claims of the petitioner were re-examined. Pursuant thereto out of the four claims made by the petitioner for four quarters, three claims were accepted and budgetary suppo....
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....17 was carried forward to October 2017, November 2017 and December 2017, thereby being utilized for payment of taxes in the said months which in turn reduced the claim for budgetary support for the months of October 2017, November 2017 and December 2017. It is the petitioner's case that the petitioner is entitled to interest on account of delay in sanction of budgetary claim as well. 5. The learned Deputy Solicitor General of India appearing for the respondents draws attention of this Court to paragraphs 3.2, 5.1, 5.4 of the Budgetary Support Scheme as well as paragraph 9(ii) of the Circular dated 27.11.2017 and submits that a combined reading of these provisions requires that as per the formula, whatever balance of ITC of CGST/IGST is available at the end of quarter, the same is to be deducted from the cash payment for calculation of budgetary support claim for the quarter. It is pointed out that the petitioner has not challenged the Circular dated 27.11.2017 and Circular dated 10.01.2019. It is submitted that since the petitioner themselves had claimed budgetary support in the negative there was no need for any personal hearing. It is also submitted that the Budgetary Support Sc....
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.... tax and balance of liability, if any, shall be paid in cash and where this condition is not fulfilled, the reimbursement sanctioning officer shall reduce the amount of budgetary support payable to the extent credit of Central tax and integrated tax, is not utilized for payment of tax. 5.2. .......... 5.3. Notwithstanding, the rescinding of the exemption notifications listed under para 2 above, the limitations, conditions and prohibitions under the respective notifications issued by Department of Revenue as they existed immediately before 01.07.2017 would continue to be applicable under this scheme. However, the provisions relating to facility of determination of special rate under the respective exemption notifications would not apply under this scheme. 5.4. Budgetary support under this scheme shall be worked out on quarterly basis for which claims shall be filed on a quarterly basis namely for January to March, April to June, July to September & October to December. 5.5. .......... 5.6. The grant of budgetary support under the scheme shall be subject to compliance of provisions relating to any other law in force. ..." 9. Paragraph 5.4 of the Budgetary Support Scheme ....
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....terly basis and claims for the same shall also be filed on a quarterly basis viz. April to June, July to September, October to December and January to March. It was also stated that the manner and method of determination of amount of budgetary support, recovery procedure thereof etc. has been enumerated in the Budgetary Support Scheme. It was pointed out in paragraph 6 of the circular dated 27.11.2017 that the claim for quarter ending September, 2017 has already become due. In order to mitigate the difficulties of the eligible units, it has been decided that units would be registered on the basis of application filed by them manually and application for claim of budgetary support for the quarter would also be filed and processed manually. It was further pointed out that the approval of the registration for the Budgetary Support Scheme and processing of the application for budgetary support for the quarter shall also be undertaken manually by the jurisdiction Deputy Commissioner/Assistant Commission of the Central Tax. The circular dated 27.11.2017 also provided forms for registration of eligible units for budgetary support and application for budgetary support. The form for applica....
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....e monthly claims as opposed to the mandate of paragraph 5.4 of the Budgetary Support Scheme. 16. The petitioner however, admittedly did not follow the budgetary scheme or the instructions of the two Circulars dated 27.11.2017 and 10.01.2019 and file the claim application on a quarterly basis. Instead the petitioner filed separate claims for the month of July 2017 and August 2017 under one covering letter. By this process the petitioner claimed budgetary support of Rs. 16,88,693/- (Rupees Sixteen Lakhs Eighty Eight Thousand Six Hundred and Ninety Three) for July 2017 and Rs. 1,54,00,360/- (Rupees One Crore Fifty Four Lakhs Three Hundred and Sixty) for August, 2017. No claim for budgetary support was made for September 2017. 17. The Circular dated 27.11.2017 required that the claim for budgetary support to be calculated in the manner provided therein. This Circular dated 27.11.2017 is not contrary to the Budgetary Support Scheme but in furtherance thereof. Claim for budgetary support was to be calculated in the following order: "(a) Budgetary support in respect of intra-state supplies + {(CGST in cash Balance of (ITC of CGST +ITC of IGST)) * 58%) * (1-Value under (G)}/ Value unde....
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....etitioner is a copy of the acknowledgement receipt only. The application was however, filed by the respondents in their counter affidavit. Although the petitioner has made an attempt to underplay this application by suggesting that the earlier applications filed by the petitioner were the correct applications it is quite clear that what the petitioner intended to do was to make the authorities to work out the budgetary support on the basis of the monthly claims filed by them earlier and not as per the quarter as required under the Budgetary Support Scheme. Had the details required to be provided in the form as mandated in the Budgetary Support Scheme and the two circulars were filled by the petitioner in the first instance there was no requirement for the authorities to require the petitioner to resubmit the applications. The details provided in the subsequent application by the petitioner as per the Budgetary Support Scheme and the two circulars led to the calculation of the budgetary support in the negative as seen above by the petitioner itself. The budgetary support under the Budgetary Support Scheme is in the nature of grant and not refund of duty under taxation law. It was in....