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2022 (9) TMI 118 - HC - GSTInterest for belated remittance of Goods and Service Tax (GST) - short disclosure of liability for the period July to October 2017 - specific argument of the petitioner is that it had sufficient ITC credit in both the electronic cash ledger (ECR) as well as the electronic credit register (ECrC) - period from July, 2017 to October, 2017 - section 50 of CGST Act - HELD THAT:- The language of Section 50 used is categoric to the effect that it is only when a remittance is effected by way of debit, that an assessee would be protected from the levy of interest. Acceding to the stand of the petitioner would result in rewriting the proviso, to the effect that, even mere availability of credit would insulate the petitioner from interest, which is impermissible. That apart, there is some force to the submissions of the respondents that credit cannot, prior to availment be taken to construe the payment . There are any number of situations where credit may be found to have been availed erroneously or on a mistaken interpretation of law. Thus, it would be risky, from the view-point of the revenue, to state as a general proposition that the mere availability of electronic credit should be assumed to be utilization that would insulate the petitioner from the levy of interest. Thus, unless an assessee actually files a return and debits the respective registers, the authorities cannot be expected to assume that available credits will be set-off against tax liability. The specific issue raised relates to the levy of interest u/s 50 of the Act in a situation where the petitioner has not filed its returns of turnover for a particular period and the remittance of taxes for the aforesaid periods is admittedly belated. The petitioner argues that no interest need be levied on the strength of the balances lying to its credit in the ECR and ECrR. - The issue decided against the assessee.
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