9911796707
TMI Blog2024 (10) TMI 1608X X X X Extracts X X X X X X X X Extracts X X X X ..... ndia, 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; c. pending final hearing and disposal of this petition, restraint the respondents from passing any final orders in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recluded 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, the petitioner was compelled to depart from INR 3 Crore and reverse, "under protest", the input tax credit equivalent to INR 3 Crore vide Form GST DRC-03. 3.5 Thereafter, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal 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 under: "10. Having heard the learned advocates appearing for the respective parties and having gone through the material produced on record, the only question that falls for the consideration of this Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Section 2 of MGST Act as the tax chargeable on taxable supply of goods or services or both but excludes tax payable on reverse charge mechanism. Therefore, any payment towards output tax, whether self-assessed in the retu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther 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 credit as laid down in section 49B of the CGST Act read with rule 88A of the CGST Rules. 2. Sub-rule (2) of rule 86 of the CGST Rules provides for debiting of the electronic credit ledger to the extent of discharge of any liability in ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctioned 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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