Payment under wrong head in GSTR-3B though declared correctly in GSTR-1

Facts of the case

  1. Liability was declared in Form GSTR-1 under the head IGST but the same was paid in Form GSTR-3B under the head CGST and SGST.
  2. At the time of filing Annual Return (GSTR-9), the payment was made under correct head of tax i.e., IGST. This payment was made on 06.11.2019.
  3. First refund application filed on 18.01.2021 was returned as deficient vide deficiency memo dated 01.02.2021.
  4. In actual, no deficiency memo was uploaded on GSTN portal and the concerned officer replied to file the refund afresh without making any remark on the deficiencies.
  5. As a last resort, the assessee filed the same application on 02.04.2021 but with a CA Certificate.

 

Adjudication of Application

  1. The officer rejected the refund application as being barred by time. The date of application was considered as 02.04.2021.

 

Our Analysis

  1. The first application dated 18.01.2021 should be considered as complete application as the action of proper officer was not in the interest of justice, and also, the CA Certificate is not required to be uploaded in present type of refund claims.
  2. Both the SCN as well as Order were issued in form of a report signed by the Superintendent. It appears that the proper officer did not even look at the application.
  3. The personal hearing was not granted to the assessee.
  4. The reply to SCN was not taken on records.
  5. In Form GSTR-9, the assessee declared the tax payable values under correct head of tax. When compared with auto-populated uneditable values of “tax paid”, there was a declaration/self-assessment regarding excess payment made under head CGST and SGST.

 

Action taken by us

  1. Appeal filed on 09.07.2021.
  2. Representation made before proper officer regarding issuance of SCN as well as Order by the Superintendent with a request to re-issue the order and to issue the same after grant of personal hearing in the matter.
  3. Later on, the Government amended the law and declared the relevant date as 24.09.2021 is such cases.

 

Order passed by the appellate authority

  1. The refund order was set aside on account of being issued in violation of principles of natural justice, without taking a note of the reply to SCN.
  2. Refund was allowed as being not hit by limitation period.
 

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