Bombay HC orders GST transfer of Rs 7.65 crore instead of recovery
In short
The Bombay High Court told the tax department to move Rs 7.65 crore to the correct IGST head instead of treating it as recoverable. The court also said Section 74 should not be used when there is no wilful tax evasion.
This matters for taxpayers because a wrong-head payment can be corrected rather than pushed into recovery if there was no intent to evade tax.
What the reporting says
The Bombay High Court ordered the tax department to transfer Rs 7.65 crore paid under the wrong GST head to the correct IGST head instead of recovering it. Taxscan’s summary says the court held Section 74 cannot be invoked where no wilful tax evasion is found. The ruling favors correction of the payment entry over coercive recovery, based on the facts before the court.
Why it matters
The Bombay High Court ordered the department to transfer Rs 7.65 crore paid under the wrong GST head to the IGST head. Taxscan’s summary says the court rejected recovery in this situation and held that Section 74 cannot be invoked when there is no wilful evasion of tax. The decision is relevant for GST taxpayers and tax authorities handling misclassified payments.