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2020 (10) TMI 467 - HC - GSTCalling for the records pertaining to the Petitioners case - HELD THAT - As per the administrative instructions issued by the Central Board of Indirect Taxes and Customs, to implement the decision of the GST council it has been decided that for the period 1 st July, 2017 to 31st August, 2020 field formations have been instructed to recover interest only on the net cash liability i.e. that portion of the tax that has been paid by debiting the electronic cash ledger or is payable through cash ledger. In those cases where show cause notices have been issued calling upon the noticees to make payment on gross tax liability, those have been directed to be kept in the Call Book till retrospective amendment is made in Section 50 of the Central Goods and Services Tax Act, 2017. Petition dismissed.
Issues:
Petitioner seeking writs of Certiorari and Mandamus, interpretation of interest payable under section 50 of the Central Goods and Services Tax Act, 2017, stay on recovery of interest, relevance and implementation of administrative instructions issued by the Central Board of Indirect Taxes and Customs. Analysis: 1. Writs of Certiorari and Mandamus: The petitioner filed a writ petition seeking the issuance of a Writ of Certiorari or a writ in the nature of Certiorari to quash an impugned letter dated 19.02.2020. Additionally, the petitioner requested the issuance of a Writ of Mandamus or a writ in the nature of Mandamus to quash the same impugned letter. The court noted the reliefs sought by the petitioner and proceeded to analyze the validity and legality of the impugned letter in light of the constitutional provisions under Article 226 of the Constitution of India. 2. Interpretation of Interest under Section 50: The petitioner urged the court to interpret and determine the interest payable under section 50 of the Central Goods and Services Tax Act, 2017. The court examined the provisions of section 50 and the amendments made to it, particularly focusing on the effective date of charging interest on the net cash tax liability. The court considered the administrative instructions issued by the Central Board of Indirect Taxes and Customs to clarify the position regarding the recovery of interest on the net cash liability for the period from 1st July, 2017 to 31st August, 2020. 3. Stay on Recovery of Interest: Pending the final hearing and disposal of the petition, the petitioner requested the court to stay the recovery of interest as per the impugned letter dated 19.02.2020. The court took into account this request for a stay on the recovery of interest and assessed the necessity and implications of granting such a stay in light of the administrative instructions issued by the relevant authorities. 4. Administrative Instructions by Central Board of Indirect Taxes and Customs: The court extensively reviewed the administrative instructions issued by the Central Board of Indirect Taxes and Customs regarding the recovery of interest on the net cash liability for the specified period. These instructions clarified the approach to be followed by field formations in recovering interest and handling cases where show cause notices had been issued on gross tax liability. The court acknowledged the decision taken by the Central Board of Indirect Taxes and Customs and concluded that the petitioner's grievance was no longer valid based on the implementation of these administrative instructions. Conclusion: In light of the administrative instructions issued by the Central Board of Indirect Taxes and Customs, the court disposed of the writ petition based on the stand taken by the respondents. The court's decision was influenced by the clarity provided in the administrative instructions regarding the recovery of interest on the net cash liability, thereby addressing the petitioner's concerns and rendering the petition unnecessary.
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