Payment of taxes under earlier indirect tax laws can be made through GST credit: CESTAT

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The Registry has raised the objection that the M/s. Dell International Services India Pvt. Ltd. (“the appellant”) is required to pay 7.5%/10% of the duty/tax and file proof of the same. Accordingly, appellant vide their letter dated November 15, 2018 addressed to Assistant Registrar submitted that the appellant has already reversed 7.5% of the duty demanded (i.e 7.5% of Rs. 47,74,29,969=Rs. 3,58,07,247) through Central Goods and Service Tax Credit (“CGST Credit”) and have indicated the same in Column 4B(2) of GSTR-3B filed for the month of August 2018.

The appellant has also filed a letter dated October 03, 2018 addressed to Assistant Commissioner informing the fact of payment of such pre-deposit through CGST Credit and indicating the same in their GSTR-3B for the month of August 2018. The applicant has also enclosed letter dated October 03, 2018 along with GSTR-3B filed for the month of August and also submitted the Circular No. 58/32/2018-GST dated September 04, 2018 and also Circular No. 42/16/2018-GST dated April 13, 2018 and submitted that the Circular very clearly states that the arrears of Central Excise duty, Service Tax or wrongly availed cenvat credit under the existing law is permissible to be paid through the utilization of amounts available in the electronic credit ledger.

In view of these facts, the Hon’ble CESTAT Bangalore vide its Interim Order No.: 105 / 2018 dated December 13, 2018 opined that, the objection raised by the Registry is not tenable and therefore directed the Registry to take the appeal on record and list the same for final disposal in due course.

Citation: Dell International services India Pvt. Ltd. vs Commissioner of Central Tax, Bangalore