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2021 (7) TMI 255 - HC - GSTLevy of Interest in terms of tax to be remitted by adjustment of credit available in the electronic register - Section 50 of the Central Goods and Services Tax Act, 2017 - HELD THAT - As per the decision of this Court in M/S. MAANSAROVAR MOTORS PRIVATE LIMITED VERSUS THE ASSISTANT COMMISSIONER, THE SUPERINTENDENT OF GST CENTRAL EXCISE, THE BRANCH MANAGER 2020 (11) TMI 107 - MADRAS HIGH COURT , where it was held that Learned counsel for the petitioner states that the interest liability relating to belated payment of tax both by cash and reversal of ITC has been coercively recovered. With the insertion of the proviso to be taken to be retrospective, these writ petitions are allowed. Thus, the impugned order is partly set aside - this writ petition is disposed off.
Issues: Challenge to communication for interest on delayed tax remittance under CGST Act, 2017.
Analysis: 1. The petitioner challenged a communication from the Superintendent of GST and Central Excise, demanding payment of approximately ?7,81,187 as interest for delayed tax remittance for financial periods 2017-18, 2018-19, and 2019-20. The interest was imposed under Section 50 of the CGST Act at 18%. 2. The petitioner admitted liability for the delayed tax component to be paid in cash but argued that no interest was due if the tax was remitted by adjusting the available credit in the electronic register. The revenue accepted this position, and the standing counsel calculated that ?1,98,416 was payable as interest on cash payment. The petitioner informed the court that they had already paid ?2,01,330 to date. Consequently, the remaining interest related to tax liability through credit adjustment was deemed to be set aside. 3. Referring to a previous decision in the case of M/s. Maansarovar Motors Private Limited, the court partially set aside the impugned order. The judgment concluded by disposing of the writ petition in the aforementioned terms and closing the connected miscellaneous petitions without imposing any costs.
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