TaxTMI 
TaxTMI 
2025 (5) TMI 2084
X X X X Extracts X X X X
X X X X Extracts X X X X
....stitution of India challenging the impugned orders dated 03rd March, 2021 and 18th May, 2021, vide which applications for refund filed by the Petitioner have been rejected. 3. The brief background of the case is that there was a rental agreement dated 08th May, 2015 entered into between DMRC and M/s Kamal Sponge Steel and Power Limited (hereinafter, 'KSSPL'), under which disputes had arisen and the same was referred to conciliation. The said dispute was resolved finally and the resolution is evident from the following two documents. ● The Minutes dated 09th October, 2020 and, ● The Conciliation Agreement dated 03rd August, 2021. Pursuant to the settlement entered into between the parties, the payment liab....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... paid on such tax or any other amount paid by him, may make an application before the expiry of two years from the relevant date in such form and manner as may be prescribed: Provided that a registered person, claiming refund of any balance in the electronic cash ledger in accordance with the provisions of sub-section (6) of section 49, may claim such refund in the return furnished under section 39 in such manner as may be prescribed. ******** Explanation. -For the purposes of this section,-- (2) 'relevant date' means- (d) in case where the tax becomes refundable as a consequence of judgment, decree, order or direction of the Appellate Authority, Appellate Tribunal or any court, the date of commu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hereunder: 8. The Court has considered the matter. The short question is whether the refund applications filed by the DMRC were within time or not. In other words, whether the 'relevant date' is to be read in terms of explanation 2 (d) or 2 (h) of Section 54 of the CGST Act. It is noticed that explanation 2(h) relied upon by the Department is a residual clause. Whereas explanation 2 (d) is clear to the extent that the same shall be applicable when tax becomes refundable as a consequence of judgment, decree, order or direction of the Appellate Authority, Appellate Tribunal or any Court. 9. It is a reasonable assertion that the exact extent of tax payable is not ascertainable at the initial stages in situations where the value of the su....
X X X X Extracts X X X X
X X X X Extracts X X X X
....pointed is an official of DMRC of the rank of Deputy and above. 12.1.3 The conciliator shall make the settlement agreement after the parties reach agreement and give an authenticated copy thereof to each of the parties. The settlement agreement shall be final and binding on the parties. The settlement agreement shall have the same status and effect as arbitration award. 12.1.4 The views expressed, or suggestions made or the admissions made by either party in the course of conciliation proceeding shall not be introduce as evidence in any arbitration proceedings." 11. Therefore, when a dispute arose between the parties, a Conciliator was appointed who had then held various meetings. Finally, vide the minutes of the meetin....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e enclosed as Annexure-P8 (Colly.). 2.5 The said Minutes and the proposed Settlement was approved by the Managing Director, DMRC, on 08.09.2020. Subsequently, vide letters dated 09.10.2020, consent was received from the Contractor, KSPPL, to the settlement recorded in the Minutes by Conciliator. Thus, a binding Agreement came into existence between the parties. As per the said Contract/ Agreement, the lease rentals for the period, July, 2017 to March, 2019, were reduced/revised retrospectively to 60% (reduced by 40%) and maintenance charges for the same period were revised to (actual expense + 20%), on grounds of deficiency in provision of services on part of DMRC during the said period. As a result, the actual transaction value of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nt in this case is one which is therefore recognised under Section 73 of the Arbitration and Conciliation Act, which reads as under: "73. Settlement agreement.-(1) When it appears to the conciliator that there exist elements of a settlement which may be acceptable to the parties, he shall formulate the terms of a possible settlement and submit them to the parties for their observations. After receiving the observations of the parties, the conciliator may reformulate the terms of a possible settlement in the light of such observations. (2) If the parties reach agreement on a settlement of the dispute, they may draw up and sign a written settlement agreement. If requested by the parties, the conciliator may draw up, or assis....