CHANDER MOHAN GOEL, PROPRIETOR OF M/S. GOEL BROS. VERSUS UNION OF INDIA & ORS.

Liability of Interest – delayed submission of GSTR-3B – Section 50 of the CGST Act – petitioner’s submission is that upon credit into the electronic cash ledger of the petitioner assessee, the amount stands credited into the account of the government – HELD THAT:- Prima-facie, we do not agree with the submission. However, since the matter is still at preliminary stage, we do not wish to say anything further on this aspect lest the same has a bearing on the final decision of the Court.

The demand raised by the respondents only in respect of interest on the ITC, which was lying to the credit of the petitioner assessee, is stayed – List on 8th October, 2020.

No.- W.P.(C) 2739/2020

Dated.- March 13, 2020

MR. MANMOHAN AND MR. SANJEEV NARULA JJ.

Petitioner Through Ms. Nidhi Gupta with Mr. Bharat Bhushan, Advocates  

Respondent Through Mr. Vivekanand Mishra, Sr. Panel Counsel for R-1/UOI. Mr. Harpreet Singh, Sr. Standing Counsel with Mr. Ankit Singh, Advocate for R-2, 3 and 4.

O R D E R  

C.M. No. 9540/2020

Allowed, subject to just exception.

W.P.(C) 2739/2020 & CM No. 9539/2020

Issue notice.

Mr. Vivekanand Mishra, learned senior panel counsel accepts notice on behalf of respondent no. 1. Mr. Harpreet Singh, learned senior standing counsel accepts notice on behalf of respondent nos. 2, 3 and 4.

We have heard learned counsels on the aspect of grant of interim relief. The instant petition impugns demand notice bearing No. GSTW/DL/KN/R-98/Interest Liability/1558/2019-20 dated 12th February, 2020 issued under Section 50 of the CGST Act for delayed submission of GSTR-3B. The aforesaid notice raises a demand of ₹ 2,34,836/- which comprises of interest on cash component of ₹ 19,548/- and ₹ 2,15,288/- in respect of tax paid by utilization of Input Tax Credit.

The submission of learned counsel for the petitioner is that upon credit into the electronic cash ledger of the petitioner assessee, the amount stands credited into the account of the government.

Prima-facie, we do not agree with the submission. However, since the matter is still at preliminary stage, we do not wish to say anything further on this aspect lest the same has a bearing on the final decision of the Court.

Accordingly, we stay the demand raised by the respondents only in respect of interest on the ITC, which was lying to the credit of the petitioner assessee.

The respondents shall file their counter-affidavit(s) within four weeks. Rejoinder, if any, be filed before the next date.

List on 8th October, 2020.

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