Order Date – 16 January 2023

Parties: M/s AFT Tobacco Pvt. Ltd. Vs Commissioner, Central Goods & Service Tax and Central Excise

Facts – 

• The Appellant, M/s AFT Tobacco Pvt. Ltd, is manufacturing tobacco products and were liable to pay GST plus NCCD. The appellant could not deposit NCCD on time due to problem faced by it, due to technical glitches on the Government portal. The portal was showing the remark “PV report pending” (physical verification report pending).
• Subsequently, when the issue was resolved in part, the appellant immediately deposited NCCD and gave intimation to the Revenue on 16.05.2019. A letter dated 18-19.09.2019 issued requiring the appellant to deposit interest for delayed deposit of NCCD.

Issue – 

• Whether the appellant is required to pay interest for delayed deposit of NCCD?

Order – 

• The Tribunal held that interest is payable for default in depositing the tax by the due date voluntarily or after determination of the amount of duty under Section 11A. Neither there is any determination of duty liability of NCCD under Section 11A, nor there is voluntary default in deposit of the amount of NCCD.
• Hence, it was held that no interest can be demanded from the appellant. Further the appellant was prevented from deposit of dues, due to glitch on the portal, which is wholly attributable to inaction on the part of Revenue. Thus, Revenue cannot take advantage of its wrong doing, by levy of interest.
• Hence the appeal is allowed.