I HIGH COURT
38 India Yamaha Motor Private Limited vs. A. C. Chennai & Others
(2022) 142 taxmann.com 369 (Madras)
Date of order: 29th August, 2022
Whether sufficient balance in Electronic Cash Ledger (ECR) and/or Electronic Credit Ledger (ECrR) is good enough to not attract interest u/s 50 when return filing is delayed. Held: No interest is payable
FACTS
The single issue involved in the writ petition relates to attracting interest u/s 50 of the CGST Act when petitioner had filed GSTR-3B for July to October, 2017 belatedly mainly on account of an inadvertent error committed in GSTR-3B of July, 2017 and a grievance petition filed seeking modifications of the return for July, 2017 was not addressed soon by the authorities, and until the outcome of the grievance petition, proper ascertainment of tax liability for subsequent months was hard to be computed and hence they were filed after delay. However, there was sufficient credit in both ECR as well as ECrR and hence there was no loss caused to the Revenue, as per the plea of the petitioner while challenging the order of the Adjudicating Authority wherein interest for belated remittance of GST was called upon. The petitioner also argued that the basis on which the proviso to section 50 was made retrospectively applicable should be adopted because by virtue of the same, interest is not payable on input tax credit available and it would be attr
