Case Law Details
Munna Traders Vs State of Bihar (Patna High Court)
Patna High Court held that imposition of penalty u/s 122 of Bihar Goods and Services Tax Act, 2017 (BGST Act) justified as assessee defaulted in tax payment due to an excessive claim of input tax credit which was later deposited without interest due under Section 50
Facts- The petitioner, an assessee, under the Bihar Goods and Services Tax Act, 2017 (for brevity, ‘BGST Act’) is aggrieved with the interest and penalty imposed on the assessee for excess claim of input tax credit, which stood paid subsequent to a notice issued under the BGST Act. The order imposing penalty and an appeal filed, with delay, stood rejected on account of the delay being in excess of that which is permitted condonation u/s. 107(4) of the BGST Act.
Conclusion- Held that the assessee has defaulted tax payment, based on an excessive claim of input tax credit, later deposited the input tax credit without interest due under Section 50; which attracted the penalty under Section 122. We have already found that there can be no coercion found insofar as the deposit is concerned. The assessee, hence, has admitted the discrepancy with respect to excess claim of input tax credit and paid the amounts due on which interest was also due under Section 50 of the BGST Act. The non-payment of tax due and the failure to pay interest attracted the penalty imposed.
In the present case, there is no proceeding of scrutiny or appeal pending and there cannot be any revision of the input tax credit since the allegation of excess claim has been admitted and differential amount paid by the assessee. The penalty levied was proper and a civil liability, attracted on the failure to pay the tax due, on a wrong claim of input tax credit.
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