Interest can’t be demanded when amount of tax was available in credit ledger: HC

  • Blog|GST & Customs|News|
  • |
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 16 May, 2022

CENVAT Credit Ledger

Case Details: Kumaran Filaments (P.) Ltd. v. Commissioner of Central GST & Central Excise - [2022] 138 94 (Madras)

Judiciary and Counsel Details

    • R. Suresh Kumar, J.
    • B. Rooban for the Petitioner.
    • Mrs. S. Ragaventhre, Standing Counsel for the Respondent.

Facts of the Case

The petitioner had unavailed CENVAT credit of Rs. 50,21,080/- during the earlier regime. After the implementation of GST regime, the petitioner claimed the said unavailed CENVAT credit through TRAN-1, and the same had been carry forwarded to a new regime as Input Tax Credit. The department informed the petitioner that return in Form ER-1 was not filed by the petitioner and asked to immediately reverse the CENVAT credit. Subsequently, the petitioner submitted return in Form ER-1 and uploaded through online on ACES portal but rejected by portal due to the technical glitches. The department raised demand and interest & penalty were levied on the said credit. It filed writ petition against the levy of interest and penalty.

High Court Held

The Honorable High Court observed that the entire amount has been appropriated from the credit of the petitioner, which had been already reversed by the petitioner. Insofar as the amount of interest is concerned, the entire amount of credit was available in the credit of the petitioner for the whole period. Since, input tax credit was not utilised or availed wrongly, interest and penalty can’t be imposed. Therefore, it was held that demand of interest or penalty was not justified and, hence liable to be set aside.

List of Cases Reviewed

List of Cases Referred to

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied