9911796707
TMI Blog2022 (10) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... terest under Section 50 along with penalty under Section 122(2) of the Central Goods and Service Tax Act, 2017 [for short, "CGST Act"], for the tax period 2017-18 to 2019-20, as illegal, improper and incorrect." 2. The averments made in the affidavit filed in support of the writ petition, are as under:- (a) The petitioner is a registered dealer, intended with GST and is on the rolls of first respondent doing business in MDF Boards and Writing Slates. The first respondent conducted inspection on the business premises of the petitioner on 04.11.2020 and thereafter issued Show Cause notice dated 06.08.2021, proposing to restrict ITC for the tax period 2019-20 at Rs.9,41,624/- [as against Rs.18,82,220/-]. On receipt of Show Cause notice, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, the interest on the same is chargeable only on 'net tax liability' i.e. if any tax is payable / paid after adjusting the Input Tax Credit available to the dealer. He relied upon various judgments of different High Courts in support of his case. He also relies to a Common Order passed by this Court on 02.03.2022 in W.P.Nos.8734 and 8768 of 2020, wherein it was held that in view of the amended Section 50 of CGST Act, 2017 with retrospective effect, interest is liable only on 'net tax liability' and not on the 'gross tax liability'. He further submits that the ITC claim was lying in Electronic Credit Ledger of the petitioner and since it was not utilized, he got it reversed pursuant to the same being pointed out by the first respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 debiting the electronic cash ledger". 7. Prima facie, it appears that proviso to Section 50 of CGST Act was amended for payment of interest on 'net tax liability' in case of delay in payment of tax declaring monthly returns. As held by the Authority in the order impugned, interest will be levied on cash payments made for the return of taxes. The tax determined after initiation of proceedings under Section 73 of CGST Act, for determination of tax in pursuance of Audit conducted under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its. This obviously was done on the basis of concession given by the counsel appearing for the Revenue as noted in para 2(1) of the order, which reads thus : (SCC pp. 610-11) "2. The High Court has dismissed the writ petition filed by the petitioner on the ground that there is an adequate alternative remedy by way of an appeal under Section 35 of the Central Excise Act. The learned counsel for the petitioner submits that the petitioner will face certain difficulties in pursuing this remedy: (1) This remedy may not be any longer available to it because the appeal has to be filed within a period of three months from the date of the assessment order and delay can be condoned only to the extent of three more months by the Collector under Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atute or delegated legislation. 10. In the present case, none of the above exceptions are established. The only question is as to whether the authorities were right in directing the petitioner for payment of interest on the disputed tax and the penalty thereof. As seen from the order impugned, original tax to an extent of Rs.36,72,034/- was assessed, but however, the petitioner is said to have paid Rs.25,93,960/- in DRC-03 pursuant to Show Cause notice issued on 06.08.2021. The petitioner is said to have paid the said amount on 06.09.2021. The question now is whether the petitioner is liable to pay interest on the tax amount of Rs.25,93,960/-paid before issuance of Show Cause notice and on Rs.10,78,074/- paid after the issuance of Show Cau ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
