Allahabad High Court Slaps Rs. 19.22 Lakh Compensation On NOIDA for GST Return Filing Error in Property Owner’s GSTR-3B

The Allahabad High Court has slapped Rs. 19.22 Lakh compensation on New Okhla Development Authority (NOIDA) for GST return filing error in property owner’s GSTR-3B.

The bench of Justice Piyush Aggarwal has observed that since the quantification against the petitioner along with penalty has been made of Rs. 19,22,778, which has been confirmed by the appellate authority, a Writ of Mandamus under Article 226 of the Constitution of India is issued to the NOIDA to pay/compensate the amount of Rs. 19,22,778/- to the petitioner within 15 days.

The petitioner/assesssee is the head (karta) of the Hindu Undivided Family, whose family is in possession and ownership of a building situated at F-16, Sector-18, Noida, Gautam Buddha Nagar. The said property is a commercial four-storey building and as such the petitioner is in the business of renting out the said property. The rent received from the said property, is taxable under the Goods & Services Tax Act, 2017 and therefore, the petitioner has filed its return. The petitioner, being a law abiding person, has paid one time lease rent amounting to Rs. 97,18,500/- to the NOIDA and also paid the GST @ 18%, which amounts to Rs. 17,49,330, pursuant to which, the NOIDA issued a tax invoice to the petitioner. The petitioner furnishes his return under Section 39 of the CGST/UPGST Act.

Due to the mistake on the part of the NOIDA, it was not reflected in the form GSTR-3B, however, the tax so deposited by the petitioner, was accepted by the NOIDA.

The proceedings were initiated against the petitioner under Section 61 of the CGST Act to which the petitioner submitted his reply and thereafter, the proceedings under Section 73 (1) of the CGST Act was initiated to which the petitioner also submitted a detailed reply supported by documentary evidence showing the payment of tax as well as acknowledgement receipt issued by the NOIDA, but without considering the same, the impugned order has been passed against which an appeal was filed, which was also dismissed without considering the material available on record.

In the counter affidavit filed on behalf of NOIDA, the fact with regard to deposit of amount of tax by the petitioner has been accepted and same has been deposited in some other head. Once the NOIDA accepts the payment of tax, the petitioner cannot be penalized twice; once paying the tax to the NOIDA for depositing the same with GST department as per the law and other by facing penal proceedings under Section 73 of the GST Act whereby has again been imposed upon the petitioner of equal amount along with penalty of Rs. 19,22,778. The amount of tax and penalty imposed by the order upon the petitioner may be directed to be paid compensated by the NOIDA to the petitioner.

The court while disposing of the writ petition held that ⁠in the event of failure of payment of compensation to the petitioner by the NOIDA as mentioned here-in-above, the District Magistrate, Gautam Buddh Nagar is directed to recover the amount from NOIDA and pay the same to the petitioner within 15 days.

Case Details

Case Title: Surender Gupta Versus Appellate Authority SGST

Case No.: Writ Tax No. 1892/2024

Date: 28/03/2025

Counsel For Petitioner: Nikhil Kumar

Counsel For Respondent: Kaushalendra Nath Singh

Read More: Controversy Erupts Over Secretive Oath of Justice Yashwant Varma at Allahabad High Court