CESTAT states Same Amount cannot again be Demanded merely because part of the Reversal produced a Negative Figure in Return [Read Order]

The disputes included the reversed aggregate Cenvat Credit of INR 15,01,222/- through its GSTR-3B for May 2018. The Adjudicating Authority appropriated only INR 8,53,051/- and confirmed the balance amount of INR 6,48,171/-, essentially because the electronic ledger reflected only INR 8,53,051/- as available balance and the remaining reversal resulted in a negative figure.

It is undisputed that the question here is not merely what was the positive balance in the electronic credit ledger on the date of reversal. The central issue here, instead, was whether the appellant had accounted for the entire reversal of INR 15,01,222/- and whether the consequential tax liability, if any, arising from a negative balance stood discharged.

It is also understood that necessary reconciliation between the pre-GST Cenvat records, TRAN-1, GSTR-3B and electronic credit ledger is essentially factual. The Tribunal was of the view that if the appellant’s statutory return records reversal of the entire amount and such reversal had either reduced available credit or increased its outputtax liability to the corresponding extent, the same amount cannot be demanded merely because part of the reversal produced a negative figure in the return.

The matter was remanded on this limited issue and was also sent to the Adjudicating Authority for verification. It was held that the appellant shall be given credit for the entire amount of INR 15,01,222/- to the extent the reversal/payment is established from the statutory records. The bench of A. K. Jyotishi (Technical Member) and Angad Prasad (Judicial Member) held that there shall be no duplication of recovery.

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