Munjaal Manishbhai Bhatt v. Union of India, [R/Special Civil Appeal No. 1350 of 2021 (Gujarat High Court), decided on May 6, 2022]
Facts of the Case:
Observations:
The Court while allowing the petition, made the following observations:
Judgment:
Accordingly, the petition was allowed by the Gujarat High Court and impugned para 2 of the Notification was read down to the effect that the deeming fiction of 1/3rd of the total amount will not be mandatory in nature. It was held that the deeming fiction will only be available at the option of the taxable person in cases where the actual value of land or undivided share in land is not ascertainable.
The Court further directed the GST authorities to refund the excess tax collected along with interest at the rate of 6% per annum.
Argus Comments:
Using the aforesaid judgment, the recipients of construction services may explore possibilities of claiming refund of excess GST paid where the value of land is separately identifiable, and burden of tax has not been passed on to another person.
Contributed by the Indirect Tax team.
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[1] Reference made to CGST Act is similar to the provisions under the respective State GST Act, unless specified otherwise.
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