Economic Times reported that India;s leading steel maker JSW Steel has moved to the Supreme Court on 23 May seeking interim relief in IN 2,600-crore tax dispute with the Odisha state revenue department and the hearing is expected to commence on 11 July. JSW Stel had earlier sought temporary relief from the Orissa High Court to restrain the state tax authorities from effecting recoveries until its final order on the dispute, but the court declined the steelmaker's plea. Orissa High Court’s bench of Justice Jaswant Singh & Justice MS Raman said in their order on 17 May “An Input Service Distributor can claim Input Tax Credit on the Goods & Services Tax only in the case of an inward supply, and an ITC transfer from one state to another is not an inward supply. We decline to allow the prayer for restraining the opposite parties from effecting recoveries of the demand, more so in equitable jurisdiction under Article 226 of the Constitution of India.”The high court asked the opposing parties to file a counter-affidavit within six weeks and adjourned the hearing to 12 August.JSW Steel had submitted that JSW Steel Mumbai participated in the tender process invited by the Government of Odisha. JSW Steel Mumbai has been granted a lease to conduct mining operations for iron ore blocks in the state of Odisha.In Odisha, a company has been allotted four blocks, Jajang Block, Ganua Block, Narayan Poshi Block, and Nuagaon Block. It was claimed by the petitioner that iron ore extracted from the iron ore blocks is either supplied by JSW Steel Odisha to JSW Plants by way of stock transfer, or to the extent permissible, supplied to third parties. It has raised tax invoices towards both the supplies and claims to have paid applicable GST. JSW Steel Odisha has paid SGST and CGST under the reverse charge mechanism on bid premium, royalty, DMF, NMET, NPV etc. The order showed that having utilised a portion of the tax paid on RCM, the petitioner-company in Odisha has passed on to JSW Steel in Maharashtra. JSW Steel in Maharashtra was declared as ISD in the shape of IGST in the garb of outward supply of facilitation services to JSW Steel.
Economic Times reported that India;s leading steel maker JSW Steel has moved to the Supreme Court on 23 May seeking interim relief in IN 2,600-crore tax dispute with the Odisha state revenue department and the hearing is expected to commence on 11 July. JSW Stel had earlier sought temporary relief from the Orissa High Court to restrain the state tax authorities from effecting recoveries until its final order on the dispute, but the court declined the steelmaker's plea. Orissa High Court’s bench of Justice Jaswant Singh & Justice MS Raman said in their order on 17 May “An Input Service Distributor can claim Input Tax Credit on the Goods & Services Tax only in the case of an inward supply, and an ITC transfer from one state to another is not an inward supply. We decline to allow the prayer for restraining the opposite parties from effecting recoveries of the demand, more so in equitable jurisdiction under Article 226 of the Constitution of India.”The high court asked the opposing parties to file a counter-affidavit within six weeks and adjourned the hearing to 12 August.JSW Steel had submitted that JSW Steel Mumbai participated in the tender process invited by the Government of Odisha. JSW Steel Mumbai has been granted a lease to conduct mining operations for iron ore blocks in the state of Odisha.In Odisha, a company has been allotted four blocks, Jajang Block, Ganua Block, Narayan Poshi Block, and Nuagaon Block. It was claimed by the petitioner that iron ore extracted from the iron ore blocks is either supplied by JSW Steel Odisha to JSW Plants by way of stock transfer, or to the extent permissible, supplied to third parties. It has raised tax invoices towards both the supplies and claims to have paid applicable GST. JSW Steel Odisha has paid SGST and CGST under the reverse charge mechanism on bid premium, royalty, DMF, NMET, NPV etc. The order showed that having utilised a portion of the tax paid on RCM, the petitioner-company in Odisha has passed on to JSW Steel in Maharashtra. JSW Steel in Maharashtra was declared as ISD in the shape of IGST in the garb of outward supply of facilitation services to JSW Steel.
