Ms Prakash Mica Exports Private Limited Through Its Director Shri Shiv Prakash Bagaria vs. The State Of Jharkhand

Held

The Court held that the petitioner cannot be made to suffer on account of the laches on the part of the respondents. The Court found that while Form GST PMT-03 was issued on June 28, 2018, there was no worthwhile explanation from the respondents for not crediting the amount immediately thereafter. The contention that the petitioner should have filed Form GST PMT-04 was found to be devoid of merit, especially as no such stand was taken in the counter affidavit. The Court also found that the cause of action for claiming interest arose only upon the credit being made on April 8, 2021, without any interest. The Court considered it too late for the respondents to argue that the petitioner ought to have filed Form GST PMT-04. Therefore, the Court disposed of the writ petition by enabling the petitioner to file an appropriate petition before Respondent No. 4 for claiming statutory interest for the period from the issuance of Form GST PMT-03 until its credit on April 8, 2021. Respondent No. 4 was directed to pass an appropriate order on this claim as per the JGST Act and Rules.

Facts

The petitioner, M/s Prakash Mica Exports Private Limited, filed a writ petition challenging the rejection of its refund claim for input tax credit for the period August 2017 to January 2018, amounting to Rs. 23,18,219. The petitioner also sought interest on this amount. During the pendency of the writ petition, the respondents credited the principal amount to the petitioner's electronic credit ledger on April 8, 2021. The petitioner's remaining grievance was the non-payment of statutory interest on the credited amount. The petitioner argued that the credit was made only after this Court's intervention and that the respondents provided no explanation for the delay in crediting the amount, despite Form GST PMT-03 being issued on June 28, 2018. The respondents contended that the petitioner should have raised a grievance in Form GST PMT-04 and that if an application for interest is filed, it will be considered.

Key Issues

1. Whether the petitioner is entitled to statutory interest on the input tax credit amount that was credited to its electronic credit ledger on April 8, 2021, for the period from June 28, 2018 (date of issuance of Form GST PMT-03) to April 8, 2021, as per Sections 54 and 56 of the JGST Act? Petitioner's arguments: The petitioner argued that the credit was made only due to the intervention of the High Court and that the respondents have failed to provide any explanation for the significant delay in crediting the amount, despite the issuance of Form GST PMT-03 on June 28, 2018. They contended that the cause of action for claiming interest arose only upon the belated credit without interest on April 8, 2021, and that the petitioner should not suffer due to the laches of the respondents. They relied on Sections 54 and 56 of the JGST Act. Respondents' arguments: The respondents argued that the petitioner ought to have raised further grievance in Form GST PMT-04 if they had any issue after the issuance of Form GST PMT-03. They also submitted that if an application for interest is filed by the petitioner, the same will be considered in accordance with law. They could not provide any explanation for the delay in crediting the amount.