2024 (10) TMI 1608

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....rsh Sharma for the respondents. 2. By way of this petition under Article 226 of the Constitution of India, the writ applicant has approached this Court with the following reliefs: "a. issue an appropriate writ of mandamus or any other writ, order or direction quashing and setting aside the impugned Letter dated 25.04.2023 (Annexure B) insofar as it has been issued arbitrarily and in violation of Article 14 of the Constitution; b. direct respondents to consider the amount of INR 3,36,82,000/- paid by the petitioner company, towards the mandate of pre-deposit, vide Form GST DRC 03 dated 09.02.2021 and 26.12.2022 is sufficient compliance of section 107 (6) (b) of the CGST Act and corresponding provisions of the IGST Act; ....

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....als incorporated in the manufacture of export/exported goods on the strength of validity issued Advance Authorization Licenses. 3.3 The petitioner company was precluded from availing benefits of rebate in terms of section 16 (3) (b) of the IGST Act if imported goods enjoyed exemptions conferred by NN 79/2017 since 09.10.2018 vide introduction of Rule 96 (10) of the Central Goods and Services Tax Rules,2017 ['CGST' Rules for short] read with Notification No. 54/2018-CT dated 09.10.2018. 3.4 Aggrieved by the arbitrariness of the aforesaid precluding provision and corresponding notifications, the petitioner had preferred a writ petition before the Bombay High Court bearing W.P. (L) No. 8839/2020 which is pending. Parallely, t....

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....04.2023 directed the petitioner to pay the pre-deposit through Electronic Cash Ledger and also directed to produce the relevant proof regarding the same before or at the time of attending the personal hearing in the matter. Being aggrieved by the aforesaid letter, the petitioner approached this Court by way of present petition. 4. Learned advocate Mr. Rastogi for the petitioner stated that the issue is squarely covered by the decision of this Court dated 30.11.2023 in Special Civil Application No. 22979 of 2022. It was submitted that the similar order is required to be passed in this petition. 5. In view of the above, it would be germane to reproduce the relevant paras of order dated 30.11.2023 passed by this Court which read as un....

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....edit Ledger. We hasten to add that in view of provisions of Subsection (3) of Section 49, the party may also pay this 10% of the Tax in dispute by utilising the amount available in the cash ledger. 10. Moreover, Sub-section (4) of Section 49 provides the amount available in the Electronic Credit Ledger may be used for making any payment towards output tax under the MGST Act or IGST Act subject to certain restrictions or conditions that may be prescribed. Sub-rule (2) of Rule 86 of MGST Rules provides for debiting of the Electronic Credit Ledger to the extent of discharge of any liability in accordance with the provisions of Section 49 of the MGST Act. Further, output tax in relation to a taxable person is defined in Clause (82) of ....

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....he CBIT & C, in its circular F. No. CBIC-20001/2/2022-GST dated 6th July 2022 has clarified as under:- Utilisation of the amounts available in the electronic credit ledger and the electronic cash ledger for payment of tax and other liabilities. xxxxxxxxx 6 Whether the amount available in the electronic credit ledger can be used for making payment of any tax under the GST Laws? 1. In terms of sub-section (4) of section 49 of CGST Act, the amount available in the electronic credit ledger may be used for making any payment towards output tax under the CGST Act or the Integrated Goods and Services Tax Act, 2017 (hereinafter referred to as "IGST Act"), subject to the provisions relating to the order of utilisation of input tax cre....

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....x only under the CGST Act or the IGST Act. It cannot be used for making payment of any interest, penalty, fees or any other amount payable under the said acts. Similarly, electronic credit ledger cannot be used for payment of erroneous refund sanctioned to the taxpayer, where such refund was sanctioned in cash. 8. Whether the amount available in the electronic cash ledger can be used for making payment of any liability under the GST Laws? As per sub-section (3) of Section 49 of the CGST Act, the amount available in the electronic cash ledger may be used for making any payment towards tax, interest, penalty, fees or any other amount payable under the provisions of the GST Laws. Therefore, CBIT&C has itself clarified that an....