Page 71 - GSTL_23rd April 2020_Vol 35_Part 4

2020 ] SHREE NANAK FERRO ALLOYS PVT. LTD. v. UNION OF INDIA 397
the fact that under the IGST head the Central Government also receives the tax
on behalf of the State, and the concerned State has been deprived of its portion of
tax, the interest is also liable to be levied from the petitioner-Company.
13. Having heard Learned Counsels for both the sides, we think it ap-
propriate to quote some of the necessary provisions which have been referred to,
by Learned Counsels for the parties. Section 49(3) and (4) of the CGST Act reads
as follows :-
“49. Payment of tax, interest, penalty and other amounts. -
(3) The amount available in the electronic cash ledger may be used for
making any payment towards tax, interest, penalty, fees or any other
amount payable under the provisions of this Act or the rules made there-
under in such manner and subject to such conditions and within such time
as may be prescribed.
(4) The amount available in the electronic credit ledger may be used for
making any payment towards output tax under this Act or under the Inte-
grated Goods and Services Tax Act in such manner and subject to such
conditions and within such time as may be prescribed.”
Section 77 of the CGST Act reads as follows :-
“77. Tax wrongfully collected and paid to Central Government or State
Government. - (1) A registered person who has paid the Central tax and
State tax or, as the case may be, the Central tax and the Union territory tax
on a transaction considered by him to be an intra-State supply, but which is
subsequently held to be an inter-State supply, shall be refunded the amount
of taxes so paid in such manner and subject to such conditions as may be
prescribed.
(2) A registered person who has paid integrated tax on a transaction con-
sidered by him to be an inter-State supply, but which is subsequently held
to be an intra-State supply, shall not be required to pay any interest on the
amount of central tax and State tax or, as the case may be, the Central tax
and the Union territory tax payable.”
Section 19 of the IGST Act reads as follows :-
“19. Tax wrongfully collected and paid to Central Government or State
Government. - (1) A registered person who has paid integrated tax on a
supply considered by him to be an inter-State supply, but which is subse-
quently held to be an intra-State supply, shall be granted refund of the
amount of integrated tax so paid in such manner and subject to such condi-
tions as may be prescribed.
(2) A registered person who has paid central tax and State tax or Union
territory tax, as the case may be, on a transaction considered by him to be
an intra-State supply, but which is subsequently held to be an inter-State
supply, shall not be required to pay any interest on the amount of integrat-
ed tax payable.”
Rule 92(1) of the CGST Rules reads as follows :-
“92. Order sanctioning refund. - (1) Where, upon examination of the
application, the proper officer is satisfied that a refund under sub-section
(5) of section 54 is due and payable to the applicant, he shall make an order
in Form GST RFD-06 sanctioning the amount of refund to which the appli-
cant is entitled, mentioning therein the amount, if any, refunded to him on
a provisional basis under sub-section (6) of section 54, amount adjusted

GST LAW TIMES  23rd April 2020  191