9911796707
TMI Blog2022 (10) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... ery person who is liable to pay tax in accordance with the provisions of this Act or the rules made thereunder, but fails to pay the tax or any part thereof to the Government within the period prescribed, shall for the period for which the tax or any part thereof remains unpaid, pay, on his own, interest at such rate, not exceeding eighteen percent, as recommended by the Government. Whether the authorities were right in directing the petitioner for payment of interest on the disputed tax and the penalty thereof? - HELD THAT:- Since an appeal provision is available, and taking into consideration the findings given by the Assessing Authority, more so, when the finding by the Assessing Authority is to the effect that the assesse is under an ob ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 20 and thereafter issued Show Cause notice dated 06.08.2021, proposing to restrict ITC for the tax period 2019-20 at Rs.9,41,624/- [as against Rs.18,82,220/-]. On receipt of Show Cause notice, the petitioner paid the amount as demanded in Show Cause notice of Rs.10,78,074/- by reversing the ITC claim as it has not utilized the ITC and the same is lying to its credit in the Electronic Credit Ledger. (b) It is the case of the petitioner that as Input Tax Credit claim was not utilized and was lying in the Electronic Ledger, it has reversed the same and there was no 'net cash liability' on the petitioner. Hence, all proceedings pursuant to the Show Cause notice shall be deemed to have been closed. (c) However, the first respondent issued Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submits that the ITC claim was lying in Electronic Credit Ledger of the petitioner and since it was not utilized, he got it reversed pursuant to the same being pointed out by the first respondent in the Audit. Hence, pleads that the order passed under challenge requires interference. 4. On the other hand, Sri Y.N. Vivekananda, learned Government Pleader for respondent nos.1 and 2, would submit that since the order is appealable under Section 107 of CGST Act, 2017, entertaining a writ petition by the High Court may not be proper. In other words, he would submit that the petitioner ought to have availed the efficacious, alternative remedy, available under the Act. He relies upon the judgment of Assistant Commissioner (CT) LTU, Kakinada & ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cash payments made for the return of taxes. The tax determined after initiation of proceedings under Section 73 of CGST Act, for determination of tax in pursuance of Audit conducted under Section 71 of the CGST Act, the benefit of payment of interest only on cash payment is not available, and interest is payable even if assessed tax is paid out of credit available to the petitioner. 8. The arguments advanced in so far as the payment of interest is concerned, in our view, can be adjudicated on a perusal of credit and cash ledgers, more so, when a finding is given by the authority that the assesse did not declare the correct output tax liability in their GSTR-3B returns. At this stage, it is also to be noticed against the order impugned an a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... because the appeal has to be filed within a period of three months from the date of the assessment order and delay can be condoned only to the extent of three more months by the Collector under Section 35 of the Act. It is pointed out that the petitioner did not file an appeal because the Collector (Appeal) at Madras had taken a view in a similar matter that an appeal was not maintainable. That apart, the petitioner in view of the huge demand involved filed a writ petition and so did not file an appeal. In the circumstances of the case, we are of the opinion that the ends of justice will be met if we permit the petitioner to file a belated appeal within one month from today with an application for condonation of delay, whereon the appeal ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stion now is whether the petitioner is liable to pay interest on the tax amount of Rs.25,93,960/-paid before issuance of Show Cause notice and on Rs.10,78,074/- paid after the issuance of Show Cause notice. Since an appeal provision is available, and taking into consideration the findings given by the Assessing Authority, more so, when the finding by the Assessing Authority is to the effect that the assesse is under an obligation to restrict input tax credit to the extent of exempt supplies every month and reverse the same in their GSTR-3B returns, but failed to do so and utilized such ineligible credit to discharge output tax liability, withholding the payment of tax by the due date, coupled with the finding given with regard to payment of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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