Since the amount covered by the bank guarantees and the dues paid by the petitioner is excess as against demand and penalty, department is required to refund an amount along with appropriate interest
Section 129 of the CGST Act — Goods in Transit – The petitioner sought a direction to the respondents to refund an amount of Rs.4,73,26,512.00 alongwith appropriate interest following encashment of eight bank guarantees dated 26th October, 2018. Four vehicles were intercepted by respondent and considering that the e-way bills were faulty and undervalued, detention orders were passed under Section 129. The petitioner furnished four bonds alongwith eight bank guaranties of ICICI Bank covering the entire demand of IGST and penalty. The respondent passed orders confirming the entire amount of IGST levied and penalty imposed. The Petitioner paid IGST and filed appeals against the original orders under Section 107. The appellate authority dismissed the appeals. Apprehending that the bank guarantees would be encashed petitioner sent email dated 28th March, 2019 to respondent stating that the bank guarantees would be renewed and that petitioner was in the process of filing further appeals under Section 112 of the Act. The respondent encashed all the eight bank guarantees. The petitioner submitted that the appellate tribunal under Section 112 has not yet been constituted in the State of Maharashtra. However, as a pre-condition for filing of appeals petitioner made payment of 20% of the IGST amount as pre-deposit under Section 112(8).
Held that:- The Hon’ble High Court directed the respondent to refund the amount covered by the encashed bank guarantees with applicable interest within a period of four weeks. The Petitioner to furnish fresh bank guarantee(s) to respondent covering the balance amount of penalty imposed on the petitioner within a period of four weeks.
Since the amount covered by the bank guarantees and the dues paid by the petitioner is excess as against demand and penalty, department is required to refund an amount along with appropriate interest
Section 129 of the CGST Act — Goods in Transit – The petitioner sought a direction to the respondents to refund an amount of Rs.4,73,26,512.00 alongwith appropriate interest following encashment of eight bank guarantees dated 26th October, 2018. Four vehicles were intercepted by respondent and considering that the e-way bills were faulty and undervalued, detention orders were passed under Section 129. The petitioner furnished four bonds alongwith eight bank guaranties of ICICI Bank covering the entire demand of IGST and penalty. The respondent passed orders confirming the entire amount of IGST levied and penalty imposed. The Petitioner paid IGST and filed appeals against the original orders under Section 107. The appellate authority dismissed the appeals. Apprehending that the bank guarantees would be encashed petitioner sent email dated 28th March, 2019 to respondent stating that the bank guarantees would be renewed and that petitioner was in the process of filing further appeals under Section 112 of the Act. The respondent encashed all the eight bank guarantees. The petitioner submitted that the appellate tribunal under Section 112 has not yet been constituted in the State of Maharashtra. However, as a pre-condition for filing of appeals petitioner made payment of 20% of the IGST amount as pre-deposit under Section 112(8).
Held that:- The Hon’ble High Court directed the respondent to refund the amount covered by the encashed bank guarantees with applicable interest within a period of four weeks. The Petitioner to furnish fresh bank guarantee(s) to respondent covering the balance amount of penalty imposed on the petitioner within a period of four weeks.