A two judge bench of the Delhi High Court allowed the demand of interest on the delayed carry forward of CENVAT credit towards assessee by Revenue. The bench instructed revenue to take necessary steps to pay the delayed carry forward of CENVAT credit in compliance with the law.
Assessee, Console Shipping Services India Pvt Ltd had filed the subject petition seeking a direction to the respondents to permit the petitioner to carry forward an amount of Rs.13,94,961/- of Central Value Added Tax ( CENVAT ) credit plus a sum of Rs.8,98,763/- as interest paid in Electronic Credit Ledger maintained under GST through GST 3B return.
Assessee contended that during pendency of the present petition, the petitioner has been granted CENVAT credit of Rs.10,36,932 and Input Tax Credit of the balance amount of Rs.3,57,477/- has been rejected. Assessee further contended that the only issue remaining is with regard to interest on the delay in permitting carry forward of CENVAT credit on the admitted amount of Rs.10,36,932/-.
Revenue contended that the subject carry forward was during the transitional period and migration of existing tax payers in terms of Section 140 of the Central Goods and Services Tax Act, 2017. Revenue contended that there is no automatic payment of interest as is stipulated under Section 56 of the Act on delay refunds. Revenue contended that in case an application is filed by the assessee, Revenue shall pass an appropriate order on the question of grant of interest in accordance with law.
The two judge bench comprising Sanjeev Sachdeva and Ravinder Dudeja Instructed the Revenue to take necessary steps to pay delayed carry forward of CENVAT credit in compliance with the law.
The assessee was represented by N K Sharma. Revenue was represented by Ruchir Mishra, Mukesh Kumar Tiwari and Reba Jena Mishra.
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