PEDERSEN CONSULTANTS INDIA PVT LTD v. UNION OF INDIA & ORS.
High Court, Delhi
Sanjeev Sachdeva, Justice & Ravinder Dudeja, Justice
PEDERSEN CONSULTANTS INDIA PVT LTD
v.
UNION OF INDIA & ORS.
UNION OF INDIA & ORS.W.P.(C) 1039/2024 dated 19.03.2024
Law : GST
Act Name : Central Goods & Services Tax Act, 2017
Relevant Section : Section 54
Decision : Matter remanded back
Reversal of ITC – Supplier failed to file returns on time- Double payment of ITC – Refund of ITC – The recipient had claimed ITC on certain invoices – The supplier failed to file their tax returns on time. – Due to the late filing by the supplier, the department asked the Petitioner to reverse the ITC claimed and deposit the same amount to the government. – It was later discovered that the supplier had eventually filed the returns and paid the tax on the said invoices. – This resulted in a situation where tax was paid twice—once by the Petitioner (as reversal of ITC) and once by the supplier. – writ petition was filed by the recipient petitioner seeking a refund of the tax paid, arguing that they were coerced into depositing the tax due to the supplier’s delayed filing. Held that –The Court held that ITC cannot be denied solely due to the supplier’s late filing of returns – – The recipient is allowed to file a refund application for the ITC reversed and deposited with the government – The court disposed of the writ petition, granting the petitioner the right to apply for a refund of the ITC that had been reversed, contingent upon the condition that the supplier has subsequently filed returns and paid the relevant taxes – The Court excluded certain periods from the limitation period for filing the application – This judgment clarifies that procedural delays by suppliers should not unjustly penalize recipients of goods and services, and ensures that recipients are entitled to appropriate refunds when double payments of tax occur.
Represented By:
Counsel for the Petitioner: Sangita Gulati, Advocate.
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