adjusting the Electronic Credit ledger
Case Title | M/s Utkal Automobiles P Ltd Vs Union of India and Ors |
Court | Orissa High Court |
Honorable Judges | Justice Jaswant Singh |
Citation | 2022 (7) GSTPanacea 228 HC Orissa W.P.A. 10277 of 2020 |
Judgement Date | 11-July-2022 |
Council for Petitioner | Rudra Prasad Kar Sriman Arpit Mohanty Bhabani Prasad Mohanty |
Council for UOI | Radhey Shyam Chimanka |
Council for State | |
Favour | Assessee |
Section | Section 50 of CGST Act,2017. |
The Orissa High Court bench of Justice Jaswant Singh and M S Raman has held that Except in case of proceeding under section 73 and 74, the interest shall be payable on that portion of the tax which is paid by debiting the electronic cash ledger.
FACTS OF THE CASE
The Petitioner is issued a demand notice under Section 50(1) of CGST Act,2017 compelling and calculating the interest on late filing of GSTR 3B for the tax period 2017-18, 2018-19 and 2019-20, where the interest in calculated on the gross GST liability before adjusting the credit available in the credit ledger as per the notice dated 18th Feb 2020.
The petitioner has questioned the notice being null and void in the light of Section 50(1) of CGST Act,2017, which states that “ Provided that the interest on the tax payable in respect of supplies made during the period furnished after the due date in return according to the proviso of section 39 ,except where such return in furnished after commencement of any proceedings under section 73 and 74 of CGST Act,2017, the interest shall be levied on that portion of the tax, that is paid by debiting the cash ledger.
The reference is also given up for the case Subash Kumar and Sanjay Kumar Vs Union of India and ors WPC 10313 of2020 dated 23th Dec 2021 where this court has observed the same perspective of this proviso.
adjusting the Electronic Credit ledger
COURT HELD
Considering the facts as recorded, in the light of said proviso this court is inclined to allow this writ petition by setting aside the demand notice date dtd 18th feb 2020 and directs the respondent to re consider the matter as a fresh in the light of amended proviso of section 50 by Finance Act,2021.
adjusting the Electronic Credit ledger
ANALYSIS OF THE JUDGEMENT
The authority of Tax shall not in any way impose the proviso retrospectively while levying any interest and penalty to the tax payer. It must be in the light of amended proviso .
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