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Whether interest is payable on ITC component also?

Shanti Prime Publication Pvt. Ltd.

Section 50 of the CGST Act, 2017 — Interest – The petitioner engaged in the business of manufacturing automotive parts, namely pressing and welding components and is taking ITC as and when applicable based on the invoices and other documents. The petitioner was unable to pay their entire taxes due in cash on the due date and therefore, the writ petitioner became liable to pay interest. The petitioner was visited with a communication dated 14.03.2019, which refers to Section 50 and directs payment of interest at the rate of 18% per annum on delayed payment of tax for the period from July 2017 to November 2018. The petitioner responded contending that he could not pay the cash component within the due date and worked out the interest on the balance cash component. The respondent contended that imposition of interest under section 50 is automatic.
Held that:- The Hon’ble High Court directed the petitioner to pay admitted liability within one week i.e. on or before 20.06.2019.If the payment is not made on or before 20.06.2019, this writ petition will stand dismissed. In case of deposition, the respondent shall consider all the points raised in writ petitioner's reply and pass an order in a manner known to law.—Dongsung Automotive Pvt. Ltd. Vs. The Superintendent of Central Taxes, Kancheepuram, The Assistant Commissioner of CGST & Central Excise, Chennai And Indian Overseas Bank [2019] 13 TAXLOK.COM 019 (Madras)

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