Page 51 - GSTL_16th July 2020_Vol. 38_Part 3

2020 (38) G.S.T.L. 289 (Guj.)

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Harsha Devani and Sangeeta K. Vishen, JJ.
VISHNU AROMA POUCHING PVT. LTD.
Versus
UNION OF INDIA
R/Special Civil Application No. 5629 of 2019, decided on 14-11-2019
Interest - Tax deposited in designated bank on time - Delayed credit in
Government Account due to technical glitches - Facts indicating that after pay-
ing GST liability for month of August, 2017, mainly by depositing amount in
designated bank through internet banking, error erupted while filing
GSTR-3B return for said month due to technical glitches in system and thus
amount deposited was not reflected in Electronic Liability Register as having
been paid - Notwithstanding that return GSTR-1 for said month was filed cor-
rectly, petitioner all along was being reflected as defaulter in system due to
error in GSTR-3B ibid - Petitioner’s numerous representations to various au-
thorities immediately thereafter and action taken on response to some of them
including filing Manual return in terms of Courts order in earlier writ petition,
did not result in solution - Much later, petitioner was informed to follow
C.B.E. & C. Circular No. 26/26/2017-GST, dated 29-12-2017 in which it has been
specified that a taxpayer may adjust amount not paid or short-paid or excess
paid in GSTR-3B with return of subsequent periods and, inter alia, pay any
liability with interest - Petitioner immediately, adjusted amount deposited in
August, 2017 in return of September, 2019 which was credited in Government
account in October, 2019 - Clearly delay in credit of GST in Government
Account is not the fault of petitioner who had approached department imme-
diately when amount paid by him was not reflecting in Electronic Liability
Register - It was Department which could not provide immediate remedial
measures - Undisputedly, all along this period amount deposited was lying in
designated bank and petitioner has not been utilized it for his own purpose -
In view of above, amount credited in Government Account in October, 2019 is
deemed to have discharged GST liability as due in August, 2017 - No interest
demandable from petitioner for delay in credit to Government account - Im-
pugned communication of demand of interest, set aside - Section 39 of Central
Goods and Services Tax Act, 2017 - Article 226 of Constitution of India. [paras
9, 10, 11, 12, 14, 15]
Petition allowed
GST LAW TIMES  16th July 2020  51