9911796707
TMI Blog2024 (9) TMI 159X X X X Extracts X X X X X X X X Extracts X X X X ..... posal of this appeal are as follows: The appellant is a registered Private Limited Company registered as such under the Kerala Goods and Service Tax Act, 2017. It is a provider of works contract services. During the period from July, 2017 to March, 2018, the appellant had un-adjusted TDS amounts in its account. In other words, during the said period, the appellant had, while paying output tax in respect of the services provided by it, failed to adjust the TDS amounts that were lying to its credit in its accounts. Instead of claiming a refund of the output tax paid, to the extent of un-adjusted TDS that was available in the accounts, it chose to treat the un-adjusted TDS as available input tax credit in its accounts and sought to transitio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant . The learned Single Judge relied on the statutory provisions under the CGST/SGST Act to hold that un-adjusted TDS amounts could not be treated as input tax credits for the purposes of the CGST/SGST Act. The writ petition was therefore dismissed, but liberty was granted to the appellant to apply for a refund of the TDS in accordance with law. 5. We have heard Sri.Jayanandakumar V., the learned counsel for the appellant, Sri.P.R.Sreejith, the learned Standing Counsel for respondents 1, 4, 5 and 7 and also Sri.V.K. Shamsudheen, the learned senior Government Pleader for respondents 2, 3 and 6. 6. On a consideration of the rival submissions, we are of the view that, on the point of law, the learned Single Judge is correct in his finding t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d amount to the appellant towards un-adjusted TDS. However, the penalties of Rs.3,72,446/- and Rs.25,000/- imposed in Annexure A1 order can be sustained, taking note of the irregularity occasioned by the appellant. We thus modify Annexure A1 order and direct that only the penalties imposed on the appellant under the said order shall be recoverable by the respondents. The demand of tax and interest thereunder is set aside. 7. Further, the disallowance of the transition of TDS, to the extent of Rs.21,80,889/- alone [Rs.59,05,352 - Rs.37,24,463] in Ext.P6 order, is upheld and Ext.P6 order modified to that extent. It will be open to the appellant to seek a refund of the said amount of Rs.21,80,889/- by way of refund from the State Government t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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