GST : The petitioner, a registered dealer, as a consignee and transporter, purchased goods from the consignor in Chennai. While those goods were in transit, they were detained and consignor paid the tax and penalty and it remitted the amount under the head ‘SGST’ instead of ‘IGST’. So the authorities have refused to release the goods

• The High Court held that section 77 provides for the refund of the tax paid mistakenly under one head instead of another. But rule 4 of the GST Refund Rules speaks of adjustment. Where the amount of refund is completely adjusted against any outstanding demand under the Act, an order giving details of the adjustment is to be issued in Part A of Form GST RFD-07. the petitioner’s counsel lays stress on this process of adjustment and asserts that the amount remitted under one head can be adjusted under another head, for the demand can be any amount under the Act thus, the concerned officials should allow the petitioner’s request and get amount transferred from the head ‘SGST’ to ‘IGST’.

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