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TMI Blog2021 (3) TMI 1139X X X X Extracts X X X X X X X X Extracts X X X X ..... Whether issuance of DRC 01 under Section 50 of the CGST Act, 2017 is legal and proper? - HELD THAT:- The plain reading of Rule 142(1)(a) of the Central Goods and Service Tax Rules, 2017 indicates that Form GST DRC 01 can be served by the proper officer along with the notice issued under Section 52 or Section 73 or Section 74 or Section 76 or Section 122 or Section 123 or Section 124 or Section 125 or Section 127 or Section 129 or Section 130 and that too, electronically as a summary of notice - there are no reference of any notice under Section 50 so far as Rule 142(1)(a) of the CGST Rules is concerned. In such circumstances, DRC 01 could not have been issued for the purpose of recovery of the amount towards interest on delayed payment of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rit applicant has prayed for the following reliefs: a) to issue writ of or in the nature of a mandamus or any other appropriate writ, order or direction holding the Form GST DRC 01 issued to the petitioner as without authority of law and liable to be quashed. b) To issue writ of or in the nature of a mandamus or any other appropriate writ, order or direction holding the interest on delayed payment of tax to be charged on gross liability is ultra vires and de hors to section 50 of the CGST Act, CGST Act and / or ultra vires to the constitution of India. c) Pending admission, hearing and till final disposal of this petition, Your Lordships may be pleased to direct the respondent. (i) From resorting to any coercive measure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... By way of ad-interim relief, further proceedings pursuant to the impugned notice dated 19.07.2019 (Annexure D to the petition) are hereby stayed. Direct service is permitted. 3 We have heard Dr. Avinash Poddar, the learned counsel appearing for the writ applicant, Mr. Utkarsh Sharma, the learned Standing Counsel appearing for the Union of India and Mr. Trupesh Kathiriya, the learned A.G.P. appearing for the State respondent. 4 Two questions fall for the consideration of this Court: [i] Whether interest under Section 50 of the Central Goods and Service Tax Act, 2017 (for short, the CGST Act, 2017 ) is to be levied on the net tax liability or on the gross tax liability? [ii] Whether issuance of DRC 01 under Section 50 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reunder, but fails to pay the tax or any part thereof to the Government within the period prescribed, shall for the period for which the tax or any part thereof remains unpaid, pay, on his own, interest at such rate, not exceeding eighteen per cent., as may be notified by the Government on the recommendations of the Council. Provided that the interest on tax payable in respect of supplies made during a tax period and declared in the return for the said period furnished after the due date in accordance with the provisions of section 39, except where such return is furnished after commencement of any proceedings under section 73 or section 74 in respect of the said period, shall be levied on that portion of the tax that is paid by debiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otice. 10. We do not find reference of any notice under Section 50 so far as Rule 142(1)(a) of the CGST Rules is concerned. In such circumstances, DRC 01 could not have been issued for the purpose of recovery of the amount towards interest on delayed payment of tax. 11. The aforesaid leads us to consider the question that if the amount towards interest on delayed payment of tax is to be recovered, then what is the Form in which the notice is to be issued? 12. In the aforesaid context, we may refer to Section 75(12) of the Act. It reads thus: 75. General provisions relating to determination of tax. (12) Notwithstanding anything contained in section 73 or section 74, where any amount of self assessed tax in accor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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