The Madras High Court has directed the to allow the petitioner to take recredit of the amount paid by the petitioner on reverse charge basis belatedly on 30.12.2017 as the Input Tax Credit in its Electronic Credit Ledger.

The bench of Justice C.Saravanan has observed that the Petitioner paid Service Tax for the period 2016-17, which was payable under RCM, on 30.12.2017.  But, due to introduction of GST, they cannot avail Cenvat Credit of the same and hence they claimed refund, which was rejected.

In the first round, the bench held that the refund claim should be considered as a claim for credit in the Electronic Credit Ledger, by applying, Doctrine of necessity and remanded the matter.  Once again, the authorities have rejected the claim for re-credit also, against which the petitioner was before the High Court for a second time. 

The bench has quashed the order rejecting re-credit and directed the authorities to allow re-credit.

The petitioner/assessee has challenged the order passed by the department by which the request of the petitioner to allow re-credit of the amount of tax paid by the petitioner on reversed charged basis as recipient of royalty services from the Government has been rejected stating that Section 142(3) of the Central Goods and Service Tax (CGST) Act, 2017 would not come to the rescue of the petitioner.

Case Details

Case Title: M/s.SRC Projects Private Limited Versus The Assistant Commissioner of GST and and Central Excise

Case No.: W.P.No.21008 of 2022

Date: 13.12.2024

Counsel For Petitioner: G.Natarajan

Counsel For Respondent: A.P.Srinivas