TaxTMI 
TaxTMI 
2024 (10) TMI 1608
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.... 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; c. pending final hearing and disposal of this petition, restraint the respondents from passing any final orders in relation to appeal No. 11/GST/CP/22-23 dated 28.12.2022, preferred by the petitioner company before Commissioner (Appeals) CGST & Central Excise Appeals Commissionerate, Surat; d. alternatively, direct respondents to refund INR 3,36,82,000/- paid vide Form GST DRC-03 dated 09.02.2021 and 26.12.2022 (Annexure A); e. grant ex-parte ad interim relief in terms of prayer clauses (c); and f. grant any other and further relief which this Hon'ble Court may deem fit and proper in the facts of the present case." 3. The brief facts leading to filing of the present petition can be stated as under: 3.1 The petitioner is public limited company engaged in the business of manufacturing and exporting specialized chemica....
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....3.2022 demanding of tax, penalty and interest. 3.7 Aggrieved by the aforesaid order, the petitioner had preferred appeal before the Commissioner (Appeals) bearing No. 11/GST/CP/22-23 and also deposited the pre-deposit amount to the tune of Rs. 3,36,82,000/- in compliance of section 107 (6) (b) of the CGST Act utilizing the amount available in the Electronic Credit Ledger vide Form GST DRC-03 dated 26.12.2022. However, the respondent No. 2 vide impugned letter 25.04.2023 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 t....
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....se charge mechanism. Therefore, any payment towards output tax, whether self-assessed in the return or payable as a consequence of any proceeding instituted under the MGST Act can be made by utilisation of the amount available in the Electronic Credit Ledger. Hence, a party can pay 10% of the disputed Tax either using the amount available in the Electronic Cash Ledger or the amount available in the Electronic Credit Ledger. Ms. Chavan relied upon an order of the High Court of Orissa at Cuttack in M/s Jyoti Construction Vs. Deputy Commissioner of CT & GST 2021 (10) TMI 524 to submit that the amount in the credit ledger cannot be used to pay the 10% required to be paid under Sub-section (6) of Section 107 of the MGST Act. In our view it will not be necessary to discuss the said order because subsequent to the said order the Central Board of Indirect Taxes and Customs, GST Policy Wing, Department of Revenue, Ministry of Finance, Government of India (CBIT & C) has, in exercise of its powers conferred by Section 168 (1) of the Central Goods and Services Tax Act, 2017, issued clarification in the form of a circular. This clarification came to be issued in view of various represe....
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....aking payment of output tax 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 any amount towards output tax payable, as a consequence of any proceeding instituted under the provisions of GST Laws, can be paid by utilisation of the amount available in the Electronic Credit Ledger of a registered person. The CBIT&C has also requested that suitable trade notices be issued to publicize the contents of the circular. 12. Keeping in mind the ratio laid down by the Hon'ble Bombay High Court in the ....