2021 (2) TMI 1097 - HC - GST

Interest for delay in payment of G.S.T. - validity of adjudication orders - HELD THAT - Learned counsel for the State and the CGST Council are required to seek specific instruction s on this issue and make their stand clear by the next date. Let these cases appear on 14th January 2021.

Summary

Issues:
1. Revision in the panel of counsels representing the C.G.S.T. Council.
2. Interpretation of Section 100 of the Finance Act 2019 regarding interest on tax payable.
3. Instructions issued by the CBIC for recovery of interest on net cash tax liability.
4. Challenge against appellate orders confirming adjudication orders.
5. Discrepancy in recovery of interest on gross tax liability.
6. Reference to decisions of other High Courts on similar matters.

Revision in Counsel Panel:
The judgment discusses a revision in the panel of counsels representing the C.G.S.T. Council due to an order passed by the Central Board of Indirect Taxes and Customs. New counsels have been appointed, and the formal handover process is expected to take about a week.

Interpretation of Section 100 of Finance Act 2019:
The petitioner's counsel referred to a notification regarding the amendment in Section 50 of the C.G.S.T. Act through Section 100 of the Finance Act 2019. The amendment pertains to interest on tax payable for supplies made after the due date, emphasizing the importance of timely payment.

CBIC Instructions on Interest Recovery:
Instructions were issued by the CBIC regarding the recovery of interest on net cash tax liability from July 2017 onwards. These instructions aimed to address concerns raised by taxpayers and ensure compliance with the Council's recommendations within the existing legal framework.

Challenge Against Appellate Orders:
The judgment mentions that the present batch of cases challenges appellate orders confirming adjudication orders. The petitioner argues against the insistence on recovery of interest on gross tax liability, citing recent decisions and administrative instructions from the CBIC.

Discrepancy in Interest Recovery:
The petitioner highlights the unfairness of assessing officers insisting on recovering interest on gross tax liability despite the CBIC's instructions to recover interest only on net cash tax liability. Reference is made to a Bombay High Court decision and similar rulings by other High Courts on this matter.

Reference to High Court Decisions:
The judgment refers to decisions of other High Courts, such as the Bombay High Court and Madras High Court, which have addressed similar issues regarding the recovery of interest on net cash tax liability. The State and CGST Council are directed to seek specific instructions and clarify their stance on the matter by a specified date.