HC allows filing of FORM GSTR -3B manually on account of technical glitches, sets aside any further demand

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Facts: Clix Capital Services Private Limited (“The Petitioner”) availed credit which was duly allocated to its units. Although, the Petitioner attempted filing revised FORM GSTR-3B, it did not be materialise on account of certain design limitations.

In terms of Bombay High Court decision in the case of Indusind Media  Communications Ltd. vs. Union of India [WP ( C) 8691/2018] Order dated October 16, 2018 the Court permitted manual filing vide order dated July 05, 2018 and December 10, 2018. In addition, the case was remanded for verification of input claims amounting to Rs. 16.80 crores.

Petitioner’s contention: The Petitioner submitted that in line with the directions of the Court, manual return was filed and notional demand in respect of Rs. 16.80 crores was reversed. The Petitioner approached the High Court to seek relief on the ground that as system problem arose on account of design limitation, Revenue must not raise any further duty demand, penalty, interest or late fee.

Held: The Hon’ble High Court of New Delhi vide W.P.(C) 1486/2018 dated March 27,2019 accepted view taken by the Petitioner and opined that the GSTR-3B Form which is now taken on record manually reflects reversal of notional demand amounting to Rs. 16.80 crores. Hence, disposing the writ petition it observed that no claims survive for adjudication.

Citation: [TS-236-HC-2019(DEL)-NT]