Petitioner has sought declaration that it is not liable to pay interest for such mistake in filing GSTR-3B for the month of July 2017 wherein inadvertently he had included the transitional credit amount again though it was filed in GSTR TRAN-1 as transitional credit in terms of Section 140 of the Act.
Section 50 of the CGST Act — Interest –- The petitioner prayed for quashing the letter dated 6thNovember 2018 whereby he has been called upon to pay interest for a sum of Rs. 72,49,126/-on account of alleged irregular ITC taken by it on 24thAugust 2017 and reverted on 13thAugust 2018. The Petitioner submitted that it is not liable to pay interest for such mistake in filing GSTR-3B for the month of July 2017 wherein inadvertently he had included the transitional credit amount of Rs. 3,11,43,255/-again. The counsel for the petitioner submitted that at no point of time the amount of Rs. 3,11,43,255/-claimed as transitional credit under GSTR TRAN-1 was availed by it for its output tax liability. There being no process of reversal of the erroneous return of transitional credit of Rs. 3,11,43,255/-in GSTR-3B available at the relevant point of time, the same was reversed only in July 2018. Therefore, no liability of interest would be attracted in terms of Section 50(3) of the Act.
Held that:- The Hon’ble High Court allowed four weeks time to the respondents to file counter affidavit. Posted the matters in the week of 5thApril, 2021.
Petitioner has sought declaration that it is not liable to pay interest for such mistake in filing GSTR-3B for the month of July 2017 wherein inadvertently he had included the transitional credit amount again though it was filed in GSTR TRAN-1 as transitional credit in terms of Section 140 of the Act.
Section 50 of the CGST Act — Interest –- The petitioner prayed for quashing the letter dated 6thNovember 2018 whereby he has been called upon to pay interest for a sum of Rs. 72,49,126/-on account of alleged irregular ITC taken by it on 24thAugust 2017 and reverted on 13thAugust 2018. The Petitioner submitted that it is not liable to pay interest for such mistake in filing GSTR-3B for the month of July 2017 wherein inadvertently he had included the transitional credit amount of Rs. 3,11,43,255/-again. The counsel for the petitioner submitted that at no point of time the amount of Rs. 3,11,43,255/-claimed as transitional credit under GSTR TRAN-1 was availed by it for its output tax liability. There being no process of reversal of the erroneous return of transitional credit of Rs. 3,11,43,255/-in GSTR-3B available at the relevant point of time, the same was reversed only in July 2018. Therefore, no liability of interest would be attracted in terms of Section 50(3) of the Act.
Held that:- The Hon’ble High Court allowed four weeks time to the respondents to file counter affidavit. Posted the matters in the week of 5thApril, 2021.