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TMI Blog2024 (2) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... cancel and/or rescind the purported order passed by the respondent no. 2 dated 17.11.2022, annexed herewith and marked as Annexure P/8 with regard to discrepancies found during scrutiny of returns under Section 61 of the CGST Act, 2017 and WBGST Act, 2017 for the period 01.07.2017 to 31.03.2018 and the purported order passed by the respondent no. 3 dated 20.04.2023 being 1st Appellate Authority, thereby not interfered with the order directed to pay interest in terms of Section 50(1) of the WBGST/CGST ACT, 2017 by the Adjudicating Officer and rejected the Memorandum of Appeal with certain observations marked as Annexure P/9. 2. It is submitted by Ld. Advocate appearing on behalf of the petitioners that actually the petitioners' accountant m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he clerical mistake in return of 2017-2018. So they are not liable to pay interest. 5. The authority issued a show cause notice under Section 73(1), CGST Act, 2017 asking the petitioners to pay interest under Section 50 of the CGST Act, 2017 to the tune of Rs 3,92,258/- on delayed payment of Output Tax @ 18% p.a. and thereafter issued final order dated 17.11.2022 directing the petitioners to pay interest @ 18% p.a. on the total amount of less payment of taxes under the Act, which has been paid with return in GSTR- 3B of April, 2018. Total actual interest liability to the tune of Rs. 3,92,258/- in total towards CGST and WBGST has been claimed by the authorities though petitioners had given a reply on 02.07.2022 stating therein that they had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is furnished after commencement of any proceedings under section 73 or section 74 in respect of the said period, shall be payable on that portion of the tax which is paid by debiting the electronic cash ledger. 9. The said amendment was in consequence of minutes of 31st meeting of the GST Council held on 22nd December, 2018, wherein the council has agreed that Section 50(3) of the CGST Act shall be amended so as to provide that interest would be leviable only "on the amount payable through the electronic cash ledger" of the taxpayer. Petitioners had already more Input Tax Credit in its electronic ledger account with the Government. Learned advocate further referred several judgments to support his aforesaid contention that the authority c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... am nagar, Rajnanadgaon, P.S. Basant, Post Rajnandgaon (C.G.) Vs. State of Chhattisgarh, through Secretary, Department of State Tax, Mantralaya, Mahanandi Bhawan, Atal Nagar, Raipur, District- Raipur (C.G.) & Ors. [WPT No. 100 of 2019). 10. On the other hand, the learned counsel appearing on behalf of the respondents submitted that interest has been charged for delay in payment of Output Tax. Furthermore, the return was not declared within the prescribed time. Therefore, the writ petition has no merit and required to be dismissed. 11. Heard the submission advanced by the parties and on perusal of the materials available on record as well as Judgment referred by the petitioners, it appears that the petitioners have placed before this Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period, shall be levied on that portion of the tax that is paid by debiting the electronic cash ledger." It is further submitted by Mr. Lakhotia Advocate assisted by Mr. Radhika Agarwal and Ms. Meghana Joshi, Advocate that the said proviso suffered "substitution" by virtue of the Finance Act, 2021 [Act No. 13 of 2021] which would remove all the ambiguity. For benefit Section 112 of the Finance Act, 2021 relating to amendment of the Central Goods and Services Tax Act, 2017, is extracted hereunder: "In Section 50 of the Central Goods and Services Act, in sub-section (1), for the proviso, the following proviso shall be substituted and shall be deemed to have been substituted with effect from the 1st day of July, 2017, namely, :- 'Provid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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