Section 77 of CGST Act, 2017—Release of detained goods— GST paid under wrong head by mistake—In the instant case, the consignor paid the tax and penalty, but the remittance was made under the head ‘SGST’ instead of ‘IGST’ head.

Section 77 of the GST Act, 2017 provides for the refund of the tax paid mistakenly under one head instead of another, however, Rule 4 of the GST Refund Rules speaks of adjustment - Where the amount of refund is completely adjusted against any outstanding demand under the Act, an order giving details of the adjustment is to be issued in Part A of FORM GST RFD-07.

Held that— Under these circumstances, High Court does not find any difficulty for the respondent officials to allow the petitioner's request and get the amount transferred from the head 'SGST' to 'IGST' - it is inequitable for the authorities to let the petitioner suffer on the count that such transfer may take some time - Second respondent directed to release the goods forthwith along with the vehicle and, then, ensure that the tax and penalty which already stood remitted under the 'SGST' is transferred to the head 'IGST'.[SAJI S., PROPRIETOR, ADITHYA AND AMBADI TRADERS, RANJITH R., PROPRIETOR, RANJITH ROADLINES VERSUS THE COMMISSIONER, STATE GST, THE ASSISTANT STATE TAX OFFICER] [KERALA HIGH COURT]