Case Law Details
Tvl. Kumaran Filaments (P) Ltd. Vs Commissioner of Central GST and Central Excise (Madras High Court)
Insofar as the due of interest is concerned, the factual matrix is that, the entire amount of Rs.50,21,080/- was very much available in the credit of the petitioner for the whole period, therefore, if at all, the same is disallowed, and accordingly, it is appropriated through the impugned order, even before appropriation, since the amount has been in the credit of the petitioner, that is, in the electronic ledger from which, the amount now has been appropriated, it can be safely stated that the said amount, since have been in the credit of the petitioner for the entire period, it may not require any interest to be paid.
In order to fortify the said view, this Court wants to press into service the decision made by a learned Judge of this Court in Maansarovar Motors Pvt. Ltd., case cited supra, dated 29.09.2020. The relevant portion of the order has already been quoted hereinabove, where, the learned Judge, after taking aid from the Judgment of the Hon’ble Supreme Court in Commissioner of Income Tax v. Anjum H Ghaswada (252 ITR 1) and also a Division Bench of this Court in Commissioner of Central Excise, Puducherry-I, v. CESTAT, Chennai , 2017 (346 ELT 80) and also some other decisions, have held that, insofar as the appropriation of the tax demand from the credit is concerned, it cannot carry any interest, therefore, demanding any interest, in the words of the Division Bench is nothing but the Department act like shylock demanding a pound of flesh.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
The prayer sought for herein is for a Writ of Certiorari, to call for the records pertaining to the impugned order in original No.GST/01/2020 passed by the third respondent in C. No: V/GST/15/31/2019-Adjn, dated 04.05.2020 and quash the same.
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