Page 59 - GSTL_16th July 2020_Vol. 38_Part 3

2020 ] VISHNU AROMA POUCHING PVT. LTD. v. UNION OF INDIA 297
12. From the facts as emerging from the record, it is manifest that de-
spite the fact that the petitioner had approached them at the earliest point of
time, the respondent authorities maintained silence for a considerable period of
time and did not provide remedial measures till directed by this Court. The er-
rors in uploading the return were not on account of any fault on the part of the
petitioner but on account of error in the system. In these circumstances, it would
be unreasonable and inequitable on the part of the respondents to saddle the pe-
titioner with interest on the amount of tax payable for August, 2017, despite the
fact that the petitioner had discharged its tax liability for such period well within
time.
13. The respondents, in paragraph 19 of their affidavit-in-reply, have
submitted that CIN is generated after deposit of money by the petitioner for the
purpose of payment of tax. CIN is generated by the authorised banks/Reserve
Bank of India (RBI) when payment is actually received by such authorised banks
or RBI, which then is seen as credit balance in the electronic cash ledger of the
petitioner. In response to such submission made on behalf of the respondents,
the Learned Advocate for the petitioner invited the attention of the Court to the
averments made in paragraphs 5.4 and 5.5 of the petition, wherein it has been
stated that when any payment is made by an assessee by internet banking, a
number for the challan for making payment is generated, which is known as
Challan Portal Identification Number (CPIN). For two challans dated 19-9-2017,
through which the petitioner has paid a total sum of Rs. 114.51 crores (rounded
off), such CPINs have been generated on the common portal, and such numbers
appear on the challans with other details. CPIN for payment of taxes by the peti-
tioner are 17092400195007 and 17092400195744. On successful credit of the
amount to the concerned Government account maintained in the authorised
bank, a Challan Identification Number is generated by the collecting bank, and
the same is indicated in the challan as laid down under sub-rule (6) of Rule 87 of
the CGST Rules. In the petitioner’s case, such CINs have been generated, and
such Challan Identification Numbers have been recorded on the challans also,
which are HDFC 17092400195007 and HDFC 17092400195744. These facts have
not been disputed by the respondents. Thus, it is evident that the amount in
question had actually been deposited by the petitioner on 19-9-2017 for the pur-
pose of payment of tax and was received in the bank designated by the respond-
ents. Moreover, it is an admitted fact that Rs. 114.51 crores (rounded off) paid in
the designated bank on 19-9-2017 and also input tax credit of Rs. 14,12,35,762/-
debited on 19-9-2017 have been lying to the credit of the GST Department, and
the petitioner has not utilised this sum aggregating to Rs. 128.63 crores (rounded
off) for discharging any other tax liability.
14. Thus, the petitioner had duly discharged the tax liability of August,
2017 within the period prescribed therefor; however, it was only on account of
technical glitches in the System that the amount of tax paid by the petitioner for
August, 2017 had not been credited to the Government account. Hence, the inter-
ests of justice would best be served if the declaration submitted by the petitioner
in October, 2019 along with the return of September, 2019 is treated as discharge
of the petitioner’s tax liability of August, 2017 within the period stipulated under
the GST laws. Consequently, the petitioner would not be liable to pay any inter-
est on such tax amount for the period from 21-9-2017 to October, 2019.
15. In the light of the above discussion, the petition succeeds and is, ac-
cordingly, allowed. It is held that the declaration submitted by the petitioner in
GST LAW TIMES  16th July 2020  59