Page 68 - GSTL_23rd April 2020_Vol 35_Part 4

394 GST LAW TIMES [ Vol. 35
amount of ` 41,98,642, under the IGST head within a period of 10 days and
shall not be liable to pay any interest on the said amount. [paras 14, 15, 17]
Petition allowed
REPRESENTED BY : Shri Sumeet Gadodia, Advocate, for the Petitioner.
Shri Ratnesh Kumar, CGST, for the Respondent.
[Order]. - Heard Learned Counsel for the petitioner-Company and
Learned Counsel for the CGST & Central Excise.
2. The petitioner is aggrieved by the letter dated 26-4-2019, issued by
the respondent No. 2, as contained in Annexure-7 to the writ application, where-
by the petitioner-Company has been saddled with the liability to pay the short
paid IGST, amounting to Rs. 41,98,642/-, along with due interest within a period
of one week, failing which, appropriate action under the Provisions of the Cen-
tral Goods and Services Tax Act, 2017, and the Rules framed thereunder, was to
be initiated against the petitioner for recovery of the IGST amount along with
due interest.
3. The petitioner is a company registered under the provisions of the
Central Goods and Services Tax Act, 2017, (hereinafter referred to as the ‘CGST
Act’), and the Integrated Goods and Services Tax Act, 2017 (hereinafter referred
to as the ‘IGST Act’). The dispute relates to the month of September, 2017, i.e.,
soon after the implementation of the aforesaid Acts, wherein the petitioner filed
its GSTR-1, showing his total Integrated Tax liability for that month at
Rs. 74,51,127/-, the Central Tax liability to be Rs. 2,68,470/-, and State Tax liabil-
ity for Rs. 2,68,470/-. Subsequently, the petitioner submitted its GSTR-3B, in
which the Integrated Tax liability was shown to be Rs. 32,52,484.58 as against the
actual liability of Rs. 74,51,127/-, and Central Tax liability was shown to be
Rs. 44,67,113.71 as against the actual liability of Rs. 2,68,470/-. In other words, in
the liability shown under the IGST there was a deficient liability amounting to
Rs. 41,98,642.42, whereas in the CGST the excess was shown to the tune of
Rs. 41,98,643.71, and the tax was also paid accordingly. This remained unnoticed
for a period of about one year, and subsequently by letter dated 1-11-2018, as
contained in Annexure-3 to the writ application, the petitioner-Company was
informed that in course of audit by CERA, it was observed after the scrutiny of
GSTR-I and GSTR-3B filed by the petitioner, that the petitioner had short paid
Integrated tax to the tune of Rs. 41,98,842/- and accordingly, the petitioner was
asked to make the payment along with the interest.
4. The said letter was replied by the petitioner-Company by letter dat-
ed 19-11-2018, as contained in Annexure-4 to the writ application, whereby it was
informed that the Company had actually paid the amount of the IGST of
Rs. 41,98,643/-, but inadvertently it was paid under the head of CGST, instead of
IGST, and as such it was not a case of short payment, rather, it was the case of
payment of IGST under a different head. It was also stated in the letter that this
mistake had occurred in the early phase of implementation of the GST, and ac-
cordingly, the adjustment of the said amount may be made in the appropriate
head. The said request of the petitioner-Company was not exceeded to, and by
letter dated 26-4-2019, as contained in Annexure-7 to the writ application, the
petitioner was again asked to deposit the IGST amounting to Rs. 41,98,642/-
along with interest thereon, which letter is under challenge in the present writ
application.
GST LAW TIMES  23rd April 2020  188