TaxTMI 
TaxTMI 
2025 (8) TMI 398
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....emand of short paid GST liability of Rs. 1,02,57,338/- (Rupees One crore two lakh fifty seven thousand three hundred and thirty eight only) (IGST: Rs. 2,150/- CGST: Rs. 51,27,594/- SGST: Rs. 51,27,594/-) under Section 73(1) of the CGST/TNGST Act, 2017 read with the provisions of Section 20 of the IGST Act, 2017. b. I order that interest at applicable rate is liable to be recovered against the amount demanded at (a) above in terms of Section 50(1) of the CGST Act, 2017 /Tamil Nadu GST Act, 2017 read with Rule 88B of the CGST/TNGST Rules 2017 read with the provisions of Section 20 of the IGST Act, 2017. c. I impose a penalty of Rs. 10,35,518/- (Rupees Ten lakh thirty five thousand five hundred and eighteen only) (IGST Rs. 10,000/- CGST Rs. 5,12,759/- + SGST-Rs. 5,12,759/-) under Section 73(9) read with Section 122 of the CGST Act, 2017/ Tamil Nadu GST Act, 2017 read with the provisions of Section 20 of the IGST Act, 2017 on the amount demanded in S.No. (a) above. 3. The petitioner is now represented by its liquidator, who was appointed by an order of the NCLT dated 06.08.2018, pursuant to the voluntary liquidation of the subject company, namely M/s.GB Engineering....
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..... In simple terms, the Electronic Cash Ledger is akin to a e-wallet from wherein payments can be made. Accordingly, in terms of the CGST Act and the Rules made thereunder, payment of tax is construed to have been made only when the Electronic Cash Ledger or the Electronic Credit Ledger is debited. It is also pertinent to note that there is no provision in GST law or the Rules made thereunder enabling the department to directly appropriate the amounts from the Electronic Cash Ledger of the tax payer. 6. This view has also been reiterated in the counter affidavit filed filed by the respondent. 7. The learned counsel for the petitioner has drawn attention to the FAQs issued by the Central Board of Indirect Taxes and Customs in Circular No. 134/04/2020-GST, bearing reference CBEC-20/16/12/2020-GST, dated 23.03.2020. Specifically, reference is made to Sl.Nos.3 and 8, which are extracted below to summarise the submissions made by the learned counsel for the petitioner: S. No. Issue Clarification 3 Is IRP/RP liable to file returns of pre-CIRP period? No. In accordance with the provisions of IBC, 2016, the IRP/RP is under obligation to comply with all legal....
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....sions of this Code to override other laws.-The provisions of this Code shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any instrument having effect by virtue of any such law. 10. It is submitted that the liability to file returns for the period prior to the commencement of the corporate insolvency resolution process does not rest with the petitioner's liquidator, as per Circular No.134/04/2020-GST, bearing reference CBEC-20/16/12/2020-GST, dated 23.03.2020. Therefore, the liquidator is not liable to furnish returns for the period prior to the commencement of the corporate insolvency resolution process. 11. That apart, it is submitted that the deposit in the Electronic Cash Ledger, which is recognised under Section 49(6) of the Central Goods and Services Tax Act, 2017 and Explanation (a) to Section 49(11) of the Act, is nothing but a deposit in the Government Account. It is further submitted that, since the tax has been paid, it cannot be held that the liquidator has not discharged the tax liability. 12. It is submitted that once the amount is paid by generating GST PMT-06, the said amount will....
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....oposal was made to amend Rule 88B of the CGST Rules in respect of interest under Section 50 of the CGST Act on delayed filing of returns in cases where credit is available in the Electronic Cash Ledger on the date of filing of the return. 17. It is submitted that the GST Council recommended an amendment to Rule 88B of the CGST Rules to provide that any amount available in the Electronic Cash Ledger on the date of filing of the return in Form GSTR-3B, which is debited while filing the said return, shall not be included while calculating interest under Section 50 of the CGST Act in respect of the delayed filing of such return. 18. The learned counsel for the petitioner has drawn attention to the order of this Court in M/s. Eicher Motor Limited vs. The Superintendent of GST and Central Excise, Range II, Tiruvottiyur Division and another, dated 23.01.2024, rendered in W.P.Nos.16866 and 22013 of 2023. 19. The learned counsel for the petitioner also drew attention to Section 60 of the Insolvency and Bankruptcy Code, 2016. It is submitted that the respondent is duty-bound to approach only the adjudicating authority under the Insolvency and Bankruptcy Code, 2016, where an applicat....