2024 (2) TMI 58 - HC - GST

Demand of interest u/s 50 of the Central Goods and Service Tax Act, 2017 - Seeking benefit of amendments to Section 50 as the amendment was done retrospectively by the Finance Acts of 2019 and 2021. - HELD THAT - The petition filed by the petitioner is disposed of. The petitioner may approach the respondents by way of an appropriate representation indicating the demand, which according to the petitioner, would be payable and seeking redetermination of the demand raised pursuant to the Notices dated 11.09.2018 13.08.2019 in terms of the amended provisions of Section 50 of the Act, whereby the proviso has been inserted and give retrospective effect. On the petitioner approaching the respondents by way of such a representation, the respondents shall redetermine the interest payable by the petitioner as per the amended provisions and take steps in accordance with law. As for non-payment of the demand raised, the Bank account of the petitioner has been attached, it would be required of the petitioner to make payment of the payable amount as indicated by him in the representation, on such payment, the attachment of the bank account of the petitioner shall be lifted by the respondents.

Summary

Issues:
The issues involved in the judgment are the retrospective amendment to Section 50 of the Central Goods and Service Tax Act, 2017 and the redetermination of the demand raised against the petitioner based on the amended provisions.

Retrospective Amendment to Section 50:
The petitioner filed a writ petition aggrieved by a Notice dated 13.08.2019, demanding the deposit of interest amounting to Rs. 22,94,722 within three days. The Notice was issued pursuant to an original notice dated 11.09.2018, indicating the grounds and calculation for the demand under Section 50 of the Act. During the pendency of the petition, changes were made to Section 50 by the Finance Act, 2019 and Finance Act, 2021, giving retrospective effect from 01.07.2017. The petitioner argued that due to the retrospective amendment, the demand needs to be redetermined by the respondents.

Redetermination of Demand:
The petitioner's counsel submitted that the demand raised by the respondents in 2018 and 2019 needs to be recalculated in light of the amended provisions of Section 50. The respondents' counsel acknowledged that the changes in Section 50 would impact the demand against the petitioner and agreed that redetermination is necessary. Consequently, the petition was disposed of, allowing the petitioner to approach the respondents with a representation indicating the payable amount based on the amended provisions for redetermination.

Resolution and Payment:
Upon the petitioner's representation, the respondents are directed to recalculate the interest payable by the petitioner as per the amended provisions and take necessary steps in accordance with the law. The petitioner is required to make the payment indicated in the representation to lift the attachment of their bank account by the respondents. However, the payment remains subject to final determination by the respondents, who are authorized to enforce any remaining balance demand as per the law.