HC sets aside GST demand and appellate orders where tax was paid under CGST and SGST instead of IGST, directing fresh adjudication and refund under Section 77 if excess paid.
Meetu Kumari | Jan 7, 2026 |
HC Sets Aside Section 73 Orders Where IGST Liability Was Discharged Under CGST And SGST Heads
The writ petition challenged various orders passed against the petitioner for the assessment year 2017-18 including an order dated 24.09.2023 passed under Section 73(3) of the GST Act in Form DRC-07, an appellate order dated 28.09.2024 rejecting the appeal for non-deposit of disputed tax, and a subsequent order dated 09.10.2025 revising the tax liability under Section 73 read with Section 61 of the GST Act. The consistent case of the petitioner was that the entire tax liability had already been discharged, though the payment was mistakenly made under the heads of CGST and SGST instead of IGST.
This factual position, the petitioner tried to prove, had been brought to the notice of the original authority as well as the appellate authority. Petitioner said if the amounts so paid under CGST and SGST were taken into account, there was no shortfall in tax and, in fact, excess tax stood deposited. Still, the authorities treated the IGST liability as unpaid and confirmed the demand, rejecting the appeal and further carrying on the recovery proceedings.
Issue Before the High Court: Whether the GST demand under IGST could be sustained where the assessee had admittedly paid the tax amount under CGST and SGST, though under an incorrect tax head.
HC’s Order: The High Court noted that even the respondents did not dispute the fact that tax had been paid by the petitioner, albeit under the wrong head. The Court observed that the dispute was not with respect to non-payment of tax, but only with regard to the head under which the payment had been made. The Court found no justification for sustaining the impugned orders fastening liability again upon the petitioner.
Therefore, all of the challenged orders were quashed and set aside. The authorities were ordered to reconsider the case afresh after taking into consideration the taxes already paid under the head of CGST and SGST in assessing the IGST liability. The Court also ordered that in case of any refund being due, the concerned ought to be paid immediately in terms of Section 77 of the GST Act.
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