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2020 (2) TMI 1576 - HC - GSTInterest on the belated payment of taxes - Section 50 of the CGST Act - gross tax liability or net tax liability after the adjustment of the input tax liability - HELD THAT - Interim relief is granted.
Issues Involved:
Determining liability under the CGST Act for interest on belated tax payments and whether the liability should be based on gross tax liability or net tax liability after input tax adjustments. Issue 1: Liability under the CGST Act for interest on belated tax payments The judgment addresses the issue of determining the liability under the CGST Act for interest on belated tax payments. The court noted the differing claims of the Department and the writ applicant regarding the total liability. The Department asserted a liability of ?1,01,78,188, while the writ applicant argued for a lower liability of ?54,77,778. This disparity in the amount of liability forms the crux of the dispute. Issue 2: Calculation of liability based on gross or net tax liability The judgment also delves into the issue of whether interest on belated tax payments, as per Section 50 of the CGST Act, is automatic or should be determined after considering explanations from the assessee. Additionally, the court explores whether the liability should be based on gross tax liability or net tax liability after adjusting input tax liability. These questions raise significant legal implications regarding the interpretation and application of the CGST Act in determining the tax liability of the assessee. The judgment further details the submissions made by Mr. Sheth, the counsel for the writ applicant, proposing a payment plan to settle the liability. Mr. Sheth suggested an initial deposit of ?10,00,000 followed by four monthly installments for the remaining amount. The court considered this proposal and granted interim relief based on the undertaking provided by the writ applicant. The judgment emphasizes the need for further proceedings in conjunction with another civil application, highlighting the interconnected nature of the legal issues at hand.
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