2026-VIL-17-SC
  1. Home
  2. 2026-VIL-17-SC

SGST Supreme Court Cases

GST – Manner of refund, Refund of IGST collected on Ocean Freight under invalid Notification – Revenue appeal against the judgment of the High Court allowing refund of tax collected by the respondent-company from its consumers towards IGST - Whether the High Court was justified in coming up with a procedure, not contemplated by the statute, for refund of such amounts to the class of consumers who bore the burden of the tax collected under invalid Notification – HELD - The High Court's procedure was not sustainable on facts and law. The CGST Act under Section 54(5) provides that upon receipt of a refund application, the officer is required to credit the refundable amount to the Consumer Welfare Fund referred to in Section 57. The exception under Section 54(8)(e) to pay the refund directly to the applicant applies only if the applicant had not passed on the tax incidence to any other person, which was not the case here as the respondent-company had admittedly passed on the tax to the consumers - In the present case, since the incidence of the tax that was collected was passed on by the respondent-company to the consumers, the exception envisaged by Section 54(8)(e) did not even apply - The procedure suggested by the respondent-company and accepted by the High Court, where the respondent-company would open a separate designated bank account and offer the refunded amount as revenue for tariff determination is not contemplated by Section 54 of the CGST Act and the Rules framed therein. Further, it would involve a gargantuan exercise to verify whether the actual consumers who bore the tax burden would be the beneficiaries of the refund, which would be impractical - The High Court judgment is set aside and the respondent-company is directed to transfer the refund amount to the authorities concerned to be credited to the Consumer Welfare Fund - The appeal is allowed
Download File
show more Judgements  

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Kasi Viswanathan V

Weekly Summary

VIL Video

Analysis of Union Budget 2026-27:
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?