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2021 (2) TMI 687 - HC - GSTLevy of interest u/s 50 on payment of GST through Credit ledger - Seeking direction upon the order direction upon or in respondents to accept assessed amount of demand in amount of demand installments - section 80 of The Bihar Goods And Services Tax Act, 2017 - immediate revocation/withdrawal of order of attachment of bank account of the petitioner upon receipt of the first installment - 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 - no recovery will be made for interest charged on delayed payment of tax which has been made by the taxpayer debiting the credit ledger. 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. This will ensure full relief to the taxpayers as decided by the GST Council.
Issues:
1. Relief sought for acceptance of assessed amount in installments under Bihar Goods and Services Tax Act, 2017. 2. Revocation of bank account attachment upon payment of first installment. 3. Quashing of assessment order dated 29.12.2018 under sections 73(9) and 50 of the Act 2017. 4. Declaration of the bank account attachment as illegal and violative of natural justice. 5. Compliance with Notification-no-63/2020 dated 25th August 2020 regarding interest on delayed payment of tax. Analysis: 1. The petitioner sought relief for the acceptance of the assessed amount in installments under the Bihar Goods and Services Tax Act, 2017. The State, through an affidavit, clarified that no recoveries would be made for interest charged on delayed tax payments for the past period, as per the Notification-no-63/2020. The petitioner's counsel affirmed this stand, leading to the closure of the proceedings. 2. The petitioner requested the revocation of the bank account attachment upon payment of the first installment. The State's affidavit, supported by the petitioner's counsel, acknowledged the technical limitations and clarified that no recoveries would be made for interest on delayed tax payments for the past period. This assurance contributed to the disposal of the petition. 3. The petitioner sought a writ for quashing the assessment order dated 29.12.2018 under sections 73(9) and 50 of the Act 2017, citing it as contrary to the law and notifications issued under the Act. However, the State's stand, as per the affidavit and circular by CBIC, regarding the interest on delayed tax payments, led to the disposal of the petition without delving into the assessment order's specifics. 4. The petitioner requested a declaration that the bank account attachment was illegal, arbitrary, and violated natural justice principles. The State's clarification and assurance regarding interest recoveries for delayed tax payments, as per the circular by CBIC, addressed the concerns raised by the petitioner, leading to the disposal of the petition without a separate ruling on the attachment issue. 5. The compliance with Notification-no-63/2020 dated 25th August 2020, concerning interest on delayed tax payments, played a crucial role in the disposal of the petition. The State's stance, supported by the petitioner's counsel, regarding no recoveries for interest on delayed tax payments for the past period aligned with the relief sought by the petitioner, resulting in the closure of the proceedings.
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