Page 78 - GSTL_26th March 2020_Vol 34_Part 4

588 GST LAW TIMES [ Vol. 34
2020 (34) G.S.T.L. 588 (Mad.)

IN THE HIGH COURT OF JUDICATURE AT MADRAS
Dr. Anita Sumanth, J.
REFEX INDUSTRIES LIMITED
Versus
ASSTT. COMMR. OF CGST & C. EX., CHENNAI
Writ Petition Nos. 23360-23361 of 2019 and W.M.P. Nos. 23106 & 23108 of 2019,
decided on 6-1-2020
Interest on belated payment of tax - Belated filing of returns under
GST - Assessee having sufficient Input Tax Credit (ITC) available with
Department hence interest, if at all, could be demanded, only on the cash com-
ponent of tax remitted belatedly - Demand notice set aside - Section 50 of Cen-
tral Goods and Services Tax Act, 2017. - Specific question for resolution to be wheth-
er in cases where credit due to assessee, payment by way of adjustment may still be
termed ‘belated’ or ‘delayed’. Use of word ‘delayed’ connotes situation of deprival, where
State deprived of funds representing tax component till such time return filed accompa-
nied by remittance of tax. Availability of ITC connotes enrichment of State. Section 50 of
Central Goods and Services Tax Act, 2017 specifically intended to apply to State of de-
prival cannot apply in situation where State is possessed of sufficient funds to credit of
assessee. Proper application of Section 50 ibid to be one where interest levied on belated
cash payment but not on ITC available with Department to credit of assessee. Latter be-
ing available with Department, hence neither belated nor delayed. Argument that ITC
liable to be reversed if found to have been erroneously claimed, and may be invalidated in
some situations, not to militate with aforesaid conclusion as availment and utilization of
ITC, two separate events. Both subject to satisfaction of statutory conditions and Officer
may reverse claim (of availment or utilization) if same found to be untenable or not in
line with statutory prescription. Recently inserted proviso to Section 50(1) of Central
Goods and Services Tax Act, 2017 supports said view. Impugned notices set aside. [paras
12, 13, 14, 15, 16, 17]
Interpretation of statutes - Proviso to Section 50(1) of Central Goods
and Services Tax Act, 2017, as per which interest shall be levied only on that
part of tax which is paid in cash, inserted with effect from 1-8-2019, it clearly
seeks to correct anomaly in provision as existed prior to such insertion - Same
ought to be read as clarificatory and operative retrospectively - Section 50 of
Central Goods and Services Tax Act, 2017. [paras 14, 15]
Petitions allowed
CASES CITED
Commissioner of Income Tax v. Anjum M.H. Ghaswala — 252 ITR 1 — Relied on ..................... [Para 11]
Megha Engineering & Infrastructures Ltd. v. Commissioner of Central Tax
— 2019 (26) G.S.T.L. 183 (Telangana) — Distinguished ........................................................ [Para 16]
REPRESENTED BY : Shri R. Anish Kumar, for the Petitioner.
Shri Thirumalaisamy, for the Respondent.
[Order (Common)]. - The petitioners are registered as assessees under
the provisions of the Central Goods and Services Tax Act, 2017 (in short ‘CGST
Act’). The petitioners have admittedly filed Returns of income belatedly for the
period 2017-18. Communications dated 7-5-2019 (in W.P. No. 23360 of 2019) and
GST LAW TIMES  26th March 2020  174