HC Directed Department to Refund Amount Recovered from Recipient Since Wrong GSTR-1 was Filed by Supplier

Case Details: Agrawal & Brothers v. Union of India - [2023] 152 taxmann.com 111 (Madhya Pradesh)

Judiciary and Counsel Details

• • Vivek Rusia & Hirdesh, JJ.
  • Abhinav Malhotra for the Petitioner.
  • H.Y. Mehta & Prasanna Prasad, Ld. Counsel for the Respondent.

Facts of the Case

The assessee participated in a bid and purchased scrap on e-auction. Later, the supplier had committed default in reporting entries with respect to purchase made in e-auction by not reporting auction sales invoice in GSTR-1. Therefore, the ITC was not reflected in assessee’s GSTR-2A and it sent several representations to supplier and it was certified by supplier that auction sale was made to assessee, acknowledging full payment in respect of auction sale value including GST.

The department issued a demand notice and in order to avoid cancellation of GSTIN due to non-payment of GST charges, the assessee agreed to repay requisite GST under protest. Thereafter, it filed writ petition seeking refund of amount paid under protest.

High Court Held

The Honorable High Court noted that in the present case, it was admitted by supplier that inadvertently amount of GST was deposited and reflected in wrong GSTIN instead of assessee’s GSTIN. The Court further noted that it is a settled law that no one can’t be made to suffer for fault of another. Therefore, it was held that assessee would be entitled to get refund from department and the Court directed department to return amount to assessee.