Daejung Moparts (P.) Ltd. Vs Assistant Commissioner Of CGST & Central Excise, Chennai

The case involves a writ petition concerning the payment of interest on Input Tax Credit (ITC) component. The petitioner submitted objections and requests regarding this issue. In a previous similar case with identical facts, the court ordered the respondents to consider the petitioner’s objections and requests regarding the payment of interest on ITC. With the consent of both parties’ counsels, the court took up the main writ petition for hearing. The court noted that the current order should be read in conjunction with the previous order, albeit with changes in numerical values and dates. The court then disposed of the writ petition with the following directions:

1. The petitioner provided a bank statement showing a balance of Rs. 33,77,394/- in their account as of 12.06.2019.
2. The court directed the registry to communicate the order to the bank mentioned in the statement and instructed the bank to pay Rs. 9,15,121/- to the Assistant Commissioner of GST and Central Excise from the available balance.
3. The communication from the first respondent to the bank, dated 21.05.2019, was set aside, allowing the petitioner to operate their bank account as usual.

The case before the court involved a writ petition regarding the payment of interest on the Input Tax Credit (ITC) component. It was noted that a similar matter with identical facts had been addressed previously by the court, wherein the respondents were directed to consider the petitioner’s objections and requests regarding the payment of interest on the ITC component. Given the similarity of the issues, the court’s previous order was to be applied to this case as well, with necessary adjustments in numerical values and dates.

The court disposed of the writ petition with the following directives:

1. The petitioner provided a bank statement showing a balance of Rs. 33,77,394 in their account as of a specified date.
2. The bank, which was not a respondent in the case, was ordered to pay Rs. 9,15,121 to the Assistant Commissioner of GST and Central Excise immediately from the mentioned balance.
3. A communication dated 21.05.2019 from the first respondent to the bank was set aside, allowing the petitioner to operate their bank account except for the aforementioned sum.
4. If the bank paid the specified amount by a certain date, a communication from the second respondent to the bank would be set aside, and the second respondent would consider the petitioner’s objections and pass an order accordingly.
5. If the decision by the second respondent favored the petitioner, the matter would conclude. Otherwise, the petitioner could appeal to the appellate authority under Section 107 of the CGST Act.
6. The writ was disposed of with no costs, and connected miscellaneous petitions were closed.

The court’s order was signed by the Assistant Registrar and addressed to the Assistant Commissioner of CGST & Central Excise, Maraimalai Nagar Division.