Section 140 of the CGST Act, 2017— Transitional Credit -- The petitioner’s attempt to revise its return, after obtaining credit, which was allocated to its units could not be materialized on account of certain design limitations. Consequentially the Court by order dated 05.07.2018 and 10.12.2018 had permitted the petitioner to lodge its GSTR 3B Form manually. The petitioner submitted that further to the previous directions, the Form GSTR-3B filed manually has since been processed and the notional demand in respect of Rs.16.80 crores has been reversed. It is submitted that in these circumstances, given that the system problem arose on account of design limitation, the respondents should not enforce any further demand, penalty, interest or late submission fee.

Held that:-The Hon’ble High Court held that the respondents are enjoined not to raise any demands towards penalty, interest or late filing fee. Late fee, if any, paid by the petitioner, shall be refunded to the petitioner. — Clix Capital Services Private Limited Vs. Union of India & Ors. [2019] 10 TAXLOK.COM 083 (Delhi)