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(i) Whether interest liability under Section 50 of the Act can be determined without initiating any adjudication process either u/s 73 or 74 of the Act in the event of an assessee raising dispute towards liability of interest? (ii) Whether recovery proceedings u/s 79 of the Act can be initiated for recovery of interest u/s 50 of the Act without initiation and completion of the adjudication proceedings under the Act?

Section 50 and 79 of the CGST Act, 2017 — Interest and Recovery Proceedings Thereof —The petitioner, a partnership firm, registered under the CGST Act. The petitioner submitted that in GSTN Portal, due date for filing of GSTR 3B Return for the month of February, 2018 and March, 2018 was reflecting as 31st March 2019.  The petitioner filed its monthly return for the month of February, 2018 and March, 2018 within the due date as reflected in GSTN Portal. The respondent directed the petitioner to make payment of interest on the ground of delay in filing of GSTR-3B Return for the months of February and March, 2018. The respondent further initiated recovery proceedings under Section 79 of the Act for the aforesaid amount of interest by issuing notice to the petitioner’s Banker. The petitioner submitted that if the amount of interest is not admitted, the same requires determination through an adjudication process to be initiated as per the detailed provisions contained under Section 73 of the Act. The moot question before the Court are as to (i) whether interest liability under Section 50 of the Act can be determined without initiating any adjudication process either u/s 73 or 74 of the Act in the event of an assessee raising dispute towards liability of interest? (ii) Whether recovery proceedings u/s 79 of the Act can be initiated for recovery of interest u/s 50 of the Act without initiation and completion of the adjudication proceedings under the Act?

Held that:- The Hon’ble High Court allowed the writ by quashing the order issued by the respondent for interest and notice for recovery proceedings under Section 79 of the Act to the Banker. The Hon’ble Court directed the respondent to initiate appropriate adjudication proceeding either under Section 73 or 74 of the Act against the petitioner and determine the liability of interest, if any, in accordance with law after giving due opportunity of hearing to the petitioner.— Mahadeo Construction Co. at Chhatarpur, Palamau through its partner Anil Kumar Singh Vs. 1. The Union of India through the Commissioner, Central Goods & Services Tax, Central Revenue Building, Ranchi. 2. Assistant Commissioner, Central Goods & Services Tax and Central Excise, Ranchi North Division, Ranchi. 3. Superintendent, Central Goods & Services Tax and Central Excise, Daltonganj Range, Daltonganj, Palamau [2020] 23 TAXLOK.COM 003 (Jharkhand)