Page 57 - GSTL_16th July 2020_Vol. 38_Part 3

2020 ] VISHNU AROMA POUCHING PVT. LTD. v. UNION OF INDIA 295
5. Pursuant to the above order, the respondents, in an affidavit dated
3-9-2019, had taken a stand that in the interest of smooth functioning of GST, it is
desirable and necessary that manual filing is not permitted. However, subse-
quently the Learned Senior Standing Counsel for the respondents had submitted
before the Court that in the case of the petitioner, while filing GSTR-3B for Sep-
tember, 2019 in October, 2019, the tax amount of August, 2017 may also be added
and thereupon the details submitted in electronic GSTR-3B shall be accepted by
the portal. The Learned Senior Standing Counsel also submitted that only the
principal amount of tax liability of August, 2017 may be declared in such return,
and not the liability of interest, subject to the outcome of the petition. According-
ly, it appears that the petitioner was permitted to file FORM GSTR-3B for Sep-
tember, 2019 with taxes payable for August, 2017 and the same has been accept-
ed by the system and, accordingly, the amount of tax payable for August, 2017,
which was lying with the designated bank has now been credited to the Gov-
ernment account and the taxes payable are now shown as nil.
6. In the light of the above events, the principal grievance voiced in the
petition, therefore, no longer survives. However, the issue regarding liability to
pay interest for eighteen months from 21-9-2017 to October, 2019 at a substantial-
ly high rate of 18% per annum still remains to be addressed.
7. Mr. Paresh Dave, Learned Advocate for the petitioner invited the at-
tention of the Court to the averments made in the memorandum of petition, to
point out that it is only after issuing the letter dated 7-3-2019, on the petitioner’s
inquiry, that the respondents informed the petitioner that its case would fall in
the appropriate table set out in Circular No. 26/26/2017-GST, dated 29-12-2017.
Reference was made to paragraph 7 of the affidavit-in-reply filed on behalf of the
respondents No. 1, 2, 3 and 4, to point out that it is admitted therein that the peti-
tioner was under a bona fide belief that since the issue would be resolved after
filing GSTR-1 it did not enter into any e-mail or correspondence with any other
authority. Referring to the affidavit-in-rejoinder filed by the petitioner in re-
sponse to the affidavit-in-reply filed on behalf of the respondents, it was pointed
out that in paragraph 5 thereof, it has been specifically averred by the petitioner
that it was never informed in the past for paying tax amount with interest for
August, 2017; and that the petitioner might have done that if such advice had
been given in the past. Reference was made to the press releases, etc. for the
glitches in the network delaying GST filing, to point out that the same also
showed that there were reports of returns showing zero figures. It was submitted
that despite the aforesaid categorical averments made in the affidavit-in-
rejoinder as well as the aforesaid facts being pointed out in the further affidavit
filed on behalf of the respondents, there is no denial or dispute in respect of the
aforesaid facts. It was submitted that even at the time when the civil application
was filed by the petitioners praying to be permitted to file the GSTR manually,
which came to be decided on 7-5-2019, no suggestion or submission was made on
behalf of the respondents for filing such return with only the principal amount of
tax without showing interest for the intervening period for releasing the amount
lying in the designated bank. It was pointed out that such suggestion was made
by the respondents only on the 16th or 17th of October, 2019 and the suggestion
was implemented by the petitioner on 20th October, 2019. It was pointed out that
accordingly, the amount of Rs. 114.51 crores and ITC of Rs. 14.12 crores lying
with the designated bank all along from 19-9-2017 has not been accepted as
payment of tax for August, 2017. It was submitted that this could have been done

GST LAW TIMES  16th July 2020  57