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2021 (2) TMI 686 - HC - GSTLevy of interest u/s 50 on payment of GST through Credit ledger - Seeking direction upon the respondents to accept assessed amount of demand in installments in terms of section 80 of The Bihar Goods and Services Tax Act, 2017 - seeking direction upon the respondents to immediately revoke/withdraw the order of attachment of bank account of the petitioner - HELD THAT - Post issuance of Notification No.- 63/2020 dated 25th August, 2020 by the central government a press release was issued by Ministry of Finance, Govt of India on 26-08-2020 wherein it was clarified that amendment in section 50(1) has been made effective prospectively wef 01-09-2020 due to certain technical limitations, however for present no recoveries for interest charged on gross liability will be recovered for the past period as well by the central and state tax administration - Further, it is stated that no recovery will be made for interest charged on delayed payment of tax which has been made by the taxpayer debiting the credit ledge. Interest on delayed payment of GST CBIC Posted on 26th August 2020 5 34 PM by PIB Delhi Central Board of Indirect Taxes Customs (CBIC) today clarified that the Notification No. 63/2020-Central Tax dated 25th August 2020 relating to interest on delayed payment of GST has been issued prospectively due to certain technical limitations. However, it has assured that no recoveries shall be made for the past period as well by the Central and State tax administration in accordance with the decision taken in the 39th Meeting of GST Council - petition disposed off.
Issues:
1. Relief sought for installment payment under section 80 of The Bihar Goods and Services Tax Act, 2017. 2. Revocation of bank account attachment order. 3. Quashing of assessment order dated 03.12.2018. 4. Declaration of bank account attachment as illegal and arbitrary. 5. Interpretation of amended section 50(1) for interest payment. Analysis: 1. The petitioner sought relief for installment payment under section 80 of The Bihar Goods and Services Tax Act, 2017. The court considered the stand taken by the State, as per the affidavit dated 09.01.2021, where it was clarified that no recoveries for interest charged on gross liability would be made for the past period by the central and state tax administration. The court acknowledged the submissions and closed the proceedings based on the State's clarification and the circular issued by the Central Board of Indirect Taxes & Customs (CBIC) regarding interest on delayed payment of GST. The petition was disposed of accordingly. 2. The petitioner requested the revocation of the order of attachment of their bank account upon payment of the first installment. However, the court disposed of the petition based on the State's stand regarding the non-recovery of interest charged on gross liability for the past period, as clarified in the affidavit and circular by CBIC. The court did not specifically address the revocation of the bank account attachment order in the judgment, but disposed of the petition in light of the State's clarification. 3. The petitioner also sought the quashing of the assessment order dated 03.12.2018, passed by the respondent assessing authority under Section 73(9) read with section 50 of the Act 2017. However, the court did not provide a detailed analysis or ruling on this specific issue in the judgment. The petition was disposed of based on the State's clarification regarding interest payment and the circular issued by CBIC. 4. The petitioner requested a declaration that the order of attachment of their bank account was illegal, arbitrary, and violative of the principles of natural justice. The court did not explicitly address this request in the judgment but disposed of the petition based on the State's clarification regarding interest payment and the circular issued by CBIC. The court did not provide a separate ruling on the legality of the bank account attachment order. 5. The petitioner prayed for an interpretation of the amended section 50(1) concerning the payment of interest on delayed tax payment. The court did not delve into a detailed analysis of this issue but disposed of the petition based on the State's clarification regarding interest payment and the circular issued by CBIC. The court did not provide a specific interpretation of the amended section 50(1) in the judgment but closed the proceedings accordingly.
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