IN THE HIGH COURT OF MADHYA PRADESH AT JABALPUR BEFORE HON'BLE SHRI JUSTICE VIVEK RUSIA &

HON'BLE SHRI JUSTICE PRADEEP MITTAL ON THE 12^th OF FEBRUARY, 2026 WRIT PETITION No. 16440 of 2022 M/S KJV ALLOYS CONDUCTORS PVT. LTD.

Versus UNION OF INDIA AND OTHERS Appearance:

Shri Mukesh Agrawal - Advocate for the petitioner. Shri Gautam Prasad - Advocate for the respondents.

ORDER Per: Justice Vivek Rusia The petitioner has filed the present petition under Article 226/227 of the Constitution of India against the order dated 10.02.2020 passed by the Respondent No.3 - Commissioner, Central GST Custom & Central Excise Office, Jabalpur and order dated 21.04.2021 passed by the Respondent No.4 - Joint Commissioner (Appeals) Central GST, Bhopal (M.P.), whereby interest amounting to Rs.54,29,792/- was confirmed on reversal of input tax credit and refund of Rs.32,00,000/- available in the electronic cash ledger was adjusted towards such interest liability.

Facts of the case, in short, are as under:-

2. The petitioner is a private limited company engaged in the business of manufacturing transmission line equipment such as aluminium conductors, cables and wire rods, and is registered under the Goods and Services Tax regime.

3. Upon introduction of the Goods and Services Tax with effect from 01.07.2017, the petitioner became entitled to carry forward eligible CENVAT credit under Section 140(1) of the Central Goods and Services Tax Act, 2017. Accordingly, the petitioner filed Form TRAN-1 on 10.07.2017 claiming a transitional credit amounting to Rs. 1,31,07,632/-. It is the case of the petitioner that due to technical glitches in the GST portal during the initial phase of implementation, the said transitional credit did not reflect in its Electronic Credit Ledger (ECL). Apprehending loss of substantial credit, the petitioner reflected the said amount as Input Tax Credit in its GSTR-3B return for the month of July

2017.

4. Subsequently, the petitioner realised that they had taken wrong excess credit of transitional credit amounting to Rs.3,48,523.00 and the petitioner was entitled to claim only Rs.1,28,21,441/-, accordingly, the petitioner rectified the mistake and reversed by submmiting Trans form on 26.12.2017. The petitioner asserts that the credit so reflected in GSTR-3B was never utilised for discharge of its outward tax liability and remained unutilized in the electronic credit ledger. The petitioner made attempts to reverse the wrongly reflected credit but encountered technical difficulties in doing so through the portal. Ultimately, in April 2019, the petitioner reversed the entire amount of Rs.1,31,07,632/- through available balance in the electronic credit ledger. Thereafter, the departmental authorities issued notices demanding an interest amounting to Rs.54,29,792/- under Section 50(3) read with Section 42(10) of the CGST Act, 2017 on the ground that the petitioner had wrongly availed input tax credit.

5. During the pendency of the aforesaid dispute, the petitioner filed an application dated 12.11.2019 seeking a refund of Rs.32,00,000/- lying in its electronic cash ledger. However, the Assistant Commissioner, CGST & Central Excise Division, Chhindwara, adjusted the said refund against the alleged interest liability and intimated the same to the petitioner vide order dated 10.02.2020.

6. Being aggrieved by the order dated 10.02.2020 passed by the Assistant Commissioner, CGST & Central Excise Division, Chhindwara, the petitioner preferred an appeal before the Joint Commissioner (Appeals), CGST, Bhopal, which came to be dismissed vide order dated 21.04.2021 confirming levy of interest and adjustment of refund. Hence, being aggrieved by both the aforesaid orders dated 10.02.2020 and 21.04.2021, the petitioner approached this Court by way of the present writ petition.

Submissions made by the learned counsel for the petitioner.

7. Learned counsel appearing for the petitioner submits that the impugned order dated 10.02.2020, passed by the Assistant Commi