Issue: Whether the alleged excess amount collected during GST inspection can be refunded or adjusted, pending final adjudication, particularly when no notice under Section 73 or 74 has been issued.

Held that: The State contended that system inputs and BIFA risk analysis indicated possible evasion, outward supply mismatches, and high-risk ITC passed to various beneficiaries. It was claimed that the deposit was voluntary under Sections 73(5) and 74(5). However, no notice under Sections 73 or 74 had been issued till date.

The Court observed that the refund claim had been rejected but the State had no objection to adjustment at final adjudication. It directed that the amount deposited by the petitioner-firm, if found to be in excess, shall be adjusted against any final dues or refunded after adjudication.

The Court also directed that inspection proceedings under Section 71 must be followed up expeditiously in accordance with the Act.

Case Name: SIDDHANT STEELS vs. STATE OF CHHATTISGARH & ORS. Dated 19.08.2025

To read the complete judgment 2025 Taxo.online 1914