The Andhra Pradesh High Court has held that the principle of unjust enrichment does not apply to refund of electronic cash ledger.
The bench of Justice R Raghunandan Rao and Justice Maheswara Rao Kuncheam has observed that the order of the Appellate Authority, is in a manner of speaking, superseded by the circular, issued by the Central Board of Indirect Taxes and Customs, dated 17.11.2021, bearing Circular No.166/22/2021-GST, by which refund of TDS/TCS amounts deposited in the electronic cash ledger is permissible, in accordance with the proviso to sub-section (1) of section 54, read with sub- section (6) of section 49 of CGST Act.
The petitioner undertakes construction of infrastructure projects. It carried out works for the State Government. The Government deducted TDS under section 51 of the CGST Act. The said amount was credited to the electronic cash ledger. The petitioner sought refund of Rs.5 crores lying in balance in cash ledger. The same was rejected on the ground of unjust enrichment. It was upheld in appeal. Hence, petition before the High Court. The petitioner submitted that the principle of unjust enrichment does not apply to refund of electronic cash ledger in terms of section 49(6) read with section 54 of the GST Act.
The Court set aside the order and allowed the writ petition. The court held that the orders are, in a sense of speaking, superseded in light of a circular dated 17.21.2021 which was issued by the CBIC pursuant to passing of the orders and remanded the matter back to the original authority for reconsideration in light of the circular.
Case Details
Case Title: Shapoorji Pallonji And Company Private Limited Versus Union Of India and Others
Case No.: Writ Petition No: 17717/2021
Date: 18.12.2024
Counsel For Petitioner: Adv. Bharat Raichandani a/w Adv. Sai Sundeep i/b UBR Legal
Counsel For Respondent: Y V Anil Kumar
