Allahabad High Court: In a tax writ filed by the parent entity (One 97 communications) of the leading Indian mobile payments and financial services company -Paytm, the division bench of Rajesh Bindal and J.J. Munir said that, since the amount of tax due on the transaction has already been paid and only dispute is whether it is to be treated as intra-state sale or inter-state sale, recovery of the demand raised vide order dated 03-12-2022 shall remain stayed till the next date of hearing.
The issue raised in the present petition is that the supply of mobile recharge coupons and Direct To Home (‘DTH’) recharge vouchers to recipients, who are in other States, would be interstate supply or intra-state supply?
One 97 communications contended that the amount of tax has been paid in Uttar Pradesh treating the same to be inter-state supply. However, demand is sought to be raised by the State claiming the same to be intra-state supply. In terms of Section 19 of the Integrated Goods and Services Tax Act, 2017, if any amount of tax is wrongly paid, it can be adjusted and in terms of Section 77 of the Central Goods and Services Tax Act, 2017, no interest is payable for such a transaction.
The Court noted that for clarification of the same, the One 97 communications has made representation to the Central Board of Indirect Taxes and Custom in 2017, and the same is still pending.
The matter was adjourned to 27-04-2023.
[One 97 Comunications Limited v. Union of India, 2023 SCC OnLine All 27, decided on 06-01-2023]
Advocates who appeared in this case :
For Petitioner: Senior Advocate Tarun Gulati, Advocate Nishant Mishra;
For Respondent: Advocate Sudarshan Singh, Advocate Anant Kumar Tiwari, Advocate Ankur Agarwal, Advocate Dhananjay Awasthi.
*Apoorva Goel, Editorial Assistant has reported this brief.