2018 Taxo.online 402

WP No.26963 of 2018 AND WMP.NO.31342 OF 2018 dated 11.10.2018

M/s. TAFE ACCESS LTD

THE ASSISTANT COMMISSIONER

2018

GST

Central Goods and Service Tax Act, 2017

K.Ravichandrabaabu

Interim

High Court

Madras

Represented by: – 

Petitioner: – Mr.R.L.Ramani for M/s.B.Raveendran,  

Respondent: – Mrs.G.Dhana Madhri 

Order: – 

These petitions coming on for orders upon perusing the petitions and the respective affidavits filed in support thereof and upon hearing the arguments of MR.R.L.RAMANI, SENIOR COUNSEL FOR M/S.B.RAVEENDRAN, Advocate for the petitioner in both the petitions and of MRS.G.DHANA MADHRI, Government Advocate (Tax) on behalf of the Respondents in both the petitions the court made the following order:-
Mrs.G.Dhana Madhri, learned Government Advocate (Tax) takes notice for the respondent and seeks time to get instructions.
2. Mr.R.L.Ramani, learned Senior Counsel appearing for the petitioner submitted that the impugned demand was made without considering the fact that the petitioner is not liable to pay the interest under Section 42(3) of the Tamil Nadu Value Added Tax Act, 2006, as it is the fault of the respondent in not transferring a sum of Rs.2,76,76,828/- lying to the credit of TAFE Reach Ltd., to the petitioner’s account even after merger of the said company with the petitioner herein. Therefore, he contended that when the petitioner is entitled to the VAT credit as stated supra, calling upon the petitioner to pay the interest also is unjustifiable. The learned Senior Counsel fairly submitted that the petitioner would pay the tax demand to the tune of Rs.2,17,72,602/- within a period of two weeks and thus, he prayed for interim relief only against the demand of interest under Section 42(3) of the TNVAT Act, 2006, as claimed in the impugned proceedings.
3. Considering the above stated facts and circumstances, more particularly, in view of the submission made by the learned Senior Counsel appearing for the petitioner that the petitioner would pay the sum of Rs.2,17,72,602/- without any dispute, there will be an order of interim stay of recovering interest alone in pursuant to the impugned proceedings, subject to the condition that the petitioner pays the sum of Rs.2,17,72,602/- within a period of two weeks from the date of receipt of a copy of this order.
Post the matter on 25.10.2018 for reporting compliance and getting instructions.