Reimbursement of GST by Coal Companies - The petitioners prayed for a direction to refund the involuntarily deposited amount, without there being any demand and/or adjudication proceeding. The petitioners further prayed that the works executed by the respective petitioners should be classified under Chapter Heading No. 9965 of Tariff Rules i.e., ‘Goods Transport Agency Services’, leviable to tax @ 12%; as against its classification under Chapter Heading No. 9986, being ‘Support Services to Mining’ which is leviable to tax @ 18%. The petitioner submitted that the respondent- BCCL issued work orders for ‘Transportation of Coal’. The counsels for the petitioners submitted that due to force and coercion, the petitioners have involuntarily deposited the amount. The case are still under investigation stage and even show cause notice has not been issued. The court observed that any determination on the issue of leviablity of tax; whether @ of 12% or whether @ 18 % will certainly hamper the entire investigation. However, as per the work orders issued, the tax which are given by the petitioners are to be reimbursed by the Coal-Company; as such, if in future the revenue holds that the tax for the work done by the respective petitioners is leviable to tax @ 18%, then the petitioners would be entitled to raise their claim for the differential tax from the Respondent-Coal Companies.

Held that:- The Hon’ble Court directed that if after investigation and subsequent proceedings, adjudication order if they are held liable to pay the tax @ 18%; then both the petitioners would be at liberty to raise their claim of the differential amount from respective Coal-companies.