Page 79 - GSTL_26th March 2020_Vol 34_Part 4

2020 ] REFEX INDUSTRIES LIMITED v. ASSTT. COMMR. OF CGST & C. EX., CHENNAI 589
15-5-2019 (in W.P. No. 23361 of 2019) computing the delay in filing of Returns
and consequently the interest to be remitted on the tax accompanying the Re-
turns were issued by the 2nd respondent in the following terms :
W.P. No. 23360 of 2019 :

Sl. No. Month Delay Duty paid Interest to be
(No. of days) (in Rs.) paid @ 18%
1. August-17 140 5016431 346340
2. September-17 110 2103842 114126
3. October-17 81 817158 32642
4. November-17 51 817158 20552
5. December-17 18 629658 5589
6. January-18 91 5312557 238410
7. February-18 63 1566965 48683
8. March-18 32 22789660 359640
Total 1165982

W.P. No. 23361 of 2019 :

Sl. No. Month Delay Duty paid Interest to be
(No. of days) (in Rs.) paid @ 18%
1. July-17 31 27000 413
2. August-17 258 900000 114510
3. October-17 197 534714 52045
4. November-17 167 534714 44119
5. December-17 134 268898 17769
6. January-18 181 13535680 1208199
7. February-18 155 12103153 925145
8. March-18 143 7750 547
Total 2362746

2. Demand notices were issued to the Banks (R3) seeking to recover the
arrears of interest from the balances in the accounts of the petitioners.
3. The petitioners objected stating that they had sufficient Input Tax
Credit (ITC) available with the Department and thus interest could be demand-
ed, if at all, only on the cash component of the tax remitted belatedly. This
amounted to a sum of Rs. 1,21,701/- (in W.P. No. 23360 of 2019) and
Rs. 1,25,751/- (in W.P. No. 23361 of 2019) and the amounts have been remitted
on 14-6-2019. According to the petitioners, the total tax payable, being
Rs. 3,94,49,225/- in W.P. No. 23360 of 2019 and Rs. 2,74,71,771/- in W.P. No.
23361 of 2019, was remitted by way of cash to an extent of Rs. 19,55,634/- (in
W.P. No. 23360 of 2019) and Rs. 12,19,151/- (in W.P. No. 23361 of 2019) and
Rs. 3,74,93,591/- (in W.P. No. 23360 of 2019) and Rs. 2,62,52,620/- (in W.P. No.
23361 of 2019) from out of the available ITC. The proceedings for coercive recov-
ery of the interest are impugned in the present Writ Petitions.
4. Though the petitioners have raised other grounds as well, including
one of the violation of principles of natural justice, the only issue agitated is the
legal issue as to whether interest would at all be payable on the component of
ITC that was, admittedly, available with the Department throughout and that

GST LAW TIMES  26th March 2020  175