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TMI Blog2019 (8) TMI 857X X X X Extracts X X X X X X X X Extracts X X X X ..... ance with law, once the admitted interest liability is paid by the Bank, the Assessing Authority, without deciding the objections of the Assessee and re-computing the interest liability, has unnecessarily filed the present intra-court Appeals. The Assessing Authority was bound to decide the aforesaid objections of the Assessee, to determine the correct liability of interest to be paid by the Assessee and without doing so, the garnishee proceedings could not have been initiated - appeal dismissed - decided against Revenue. Interest on delayed payment of tax - Section 50 of CGST Act - Assessee had filed the Returns belatedly as they could not make the payment of GST on time - HELD THAT:- Section 50 speaks about the liability to pay interes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sundareswaran For the Respondents in W.A.No.2151 of 2019 : Mr.S.Muthu Venkatraman JUDGMENT PER: DR.VINEET KOTHARI, J. The Revenue has filed these two intra court appeals aggrieved by the orders dated 13.6.2019 passed by the learned Single Judge of this court directing the Assessing Authority who is the present appellant before us to decide the objections of the Assessee dated 10.5.2019 and 29.3.2019 filed in pursuance of the Notice demanding interest issued under Section 50 of the CGST Act by the present Appellant on 2.5.2019 and 14.3.2019 to the Respondent/Assessee. 2. The interest demand on the alleged delay in filing returns under CGST Act was c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed and Ninety Four only). b) As the bank has not been arrayed as respondent, Registry shall communicate this order to the aforesaid bank at the aforesaid address and from and out of the aforesaid balance of little over ₹ 33,00,000/-, the said bank shall pay out an admitted sum of ₹ 9,15,121/- (Rupees Nine Lakhs Fifteen Thousand One Hundred and Twenty One only) to the Assistant Commissioner of GST and Central Excise, Maraimalainagar Division (first respondent herein) forthwith. c) In all other aspects, communication dated 21.05.2019 bearing reference C.No.IV/16/30/2019-Tech-III from the first respondent to the aforesaid bank will stand set aside. This would mean that the writ petitioner c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only a direction has been given by the learned Single Judge to consider the objections of the Assessee dated 10.5.2019 and 29.3.2019 and pass orders in accordance with law, once the admitted interest liability is paid by the Bank, the Assessing Authority, without deciding the objections of the Assessee and re-computing the interest liability, has unnecessarily filed the present intra-court Appeals. The Assessing Authority was bound to decide the aforesaid objections of the Assessee, to determine the correct liability of interest to be paid by the Assessee and without doing so, the garnishee proceedings could not have been initiated. 5. Therefore, the learned Single Judge has rightly set aside the garnishee direction to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be paid. (3) A taxable person who makes an undue or excess claim of input tax credit under sub-section (10) of section 42 or undue or excess reduction in output tax liability under sub-section (10) of section 43, shall pay interest on such undue or excess claim or on such undue or excess reduction, as the case may be, at such rate not exceeding twenty-four per cent, as may be notified by the Government on the recommendations of the Council. 3. The learned counsel for the Appellant submits that every person, who is liable to pay tax, but, fails to pay the tax or any part thereof, shall for the period for which the tax or any part thereof remains unpaid, pay, on his own, interest and not on his a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laim for ITC was made beyond the period prescribed. Therefore, the liability to pay interest under Section 50(1) arose automatically. The petitioner cannot, therefore, escape from this liability. 5. I therefore, hold that the appellant has raised an arguable point which requires deeper consideration of the scope of Section 50 of the Central Goods and Services Tax Act, 2017 and consequently, I am of the view that the summary dismissal of the Writ Appeal at the admission stage itself by my learned Brother and the view taken by the learned Single Judge require to be revisited. 6. The matter is, therefore, referred to the Hon'ble the Chief Justice under Clause 36 of the Letters Patent, on the issue as to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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