9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (11) TMI 24 - HC - GSTLiability to pay interest u/s 50 on Net Tax liability or Gross tax (GST) without adjustment of ITC - Refund of amount wrongly forfeited from the pending refund application of the petitioner - HELD THAT - It is apparent that for the period of 1st 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 case 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 CGST Act. The present writ petition is disposed of in accordance with the Administrative Instruction dated 18th September, 2020 issued by the Ministry of Finance through the Central Board of Indirect Taxes and Customs.
Issues:
1. Challenge to rejection of refund application 2. Liability to pay interest under Section 50 of the CGST Act Analysis: 1. The petition challenged the rejection of a refund application and sought a direction for the refund of the forfeited amount. The petitioner also sought a declaration regarding the liability to pay interest under Section 50 of the Central Goods and Services Tax Act, 2017 (CGST Act). The Court had issued notice in the petition on July 30, 2020. The petitioner submitted an Administrative Instruction dated September 18, 2020, issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes and Customs, regarding the recovery of interest on net cash tax liability. The instruction clarified that interest should be charged on the net cash tax liability for the period from July 1, 2017, to August 31, 2020. It also mentioned that show cause notices issued on gross tax payable should be kept in Call Book until a retrospective amendment is made in Section 50 of the CGST Act. 2. The Administrative Instruction dated September 18, 2020, clarified that interest should only be recovered on the net cash tax liability for the specified period. Following this instruction, the Court noted that the grievance of the petitioner regarding the liability to pay interest under Section 50 of the CGST Act no longer existed. Consequently, the Court disposed of the writ petition in accordance with the Administrative Instruction issued by the Ministry of Finance through the Central Board of Indirect Taxes and Customs. The Court directed the order to be uploaded on the website and forwarded to the counsel via email.
|
