Case Reference:
Shapoorji Pallonji and Company Pvt. Ltd. v. Union of India & Others
High Court of Andhra Pradesh at Amaravati
Writ Petition No. 17717 of 2021
Category: Refund – TDS/TCS in Electronic Cash Ledger
Date of Judgment: 18 December 2024
Relevant Sections: Section 49(6), Section 54(1) proviso of the CGST Act, 2017
Facts (Para 1–4):
The petitioner, Shapoorji Pallonji and Company Pvt. Ltd., a registered dealer under the GST Act, accumulated TDS amounts in its electronic cash ledger that were credited by various deductors. After discharging its tax liability through input tax credit, the company applied for refund of the leftover TDS balance. However, the Assessing Authority, vide order dated 17.10.2019, rejected the refund claim. The appeal filed before the Appellate Authority was also dismissed on 26.12.2020 (Order No. ZH371220OD95299).
Questions / Dispute (Para 5–6):
The main issue before the Court was whether the refund of excess TDS credited to the electronic cash ledger could be denied based on the principle of unjust enrichment and whether such a refund is permissible under the CGST Act.
Observations (Para 8–9):
The Court noted that the CBIC had issued Circular No. 166/22/2021-GST dated 17.11.2021, clarifying that refund of TDS/TCS amounts deposited in the electronic cash ledger is permissible under Section 54(1) (proviso) read with Section 49(6) of the CGST Act. The circular thus superseded earlier departmental views that denied such refunds on unjust enrichment grounds. The Court observed that the authorities failed to consider this clarification when rejecting the refund.
Judgment (Para 9–10):
The High Court set aside both the Order-in-Original (17.10.2019) and the Order-in-Appeal (26.12.2020), remanding the matter to the authorities for fresh consideration in light of the CBIC Circular. The Court directed that the exercise be completed within three months from receipt of the order. No costs were awarded.
Table of Cases Referred
| Sl. No. | Case Name | Citation / Ref | Verdict / Relevance |
|---|---|---|---|
| 1 | CBIC Circular No. 166/22/2021-GST dated 17.11.2021 | Administrative Clarification | Clarified that refund of TDS/TCS in electronic cash ledger is permissible under Section 54(1) proviso read with Section 49(6) |
Between Fine Lines (Practical Takeaway):
This decision reinforces that refund of excess TDS/TCS amounts credited to the electronic cash ledger cannot be denied merely by invoking the principle of unjust enrichment. With the CBIC’s clarification now judicially recognized, businesses that have unutilized TDS balances in their cash ledger are entitled to claim refund under Section 54(1) read with Section 49(6), subject to verification. Taxpayers should rely on the circular while pursuing such refund claims before authorities.
Disclaimer – “The above summary is for academic purpose only; not formal legal opinion. Seek professional opinion before application. Author or publisher or website shall not be responsible for any usage in any form.”
