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Before recovery interest payable in accordance with Section 50 of the GST Act, a show Cause Notice is required to be issued to the assessee.

Interest — In the instant case, assessee challenged the notice of Demandby which a demand for interest in accordance with sub section (1) of Section 50 of CGST Act was made. On the basis of the said demand, consequential action was taken by the taxauthoritiesby which the account of the respondentassesseewas attached on account of nonpayment of interest. This is the secondchallenge in the writ petition. On plain reading of sub section (1) of Section 73 of the GST Act, it is applicable when any tax has not been paid or short paid. It contemplates that a show Cause Notice is to be issued to the assessee calling upon him to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under Section 50 of the GST Act. Therefore, the learned Single Judge rightly held in paragraph 6 of the impugned judgment that issuance of show Cause Notice is sine qua non to proceed with the recovery of interest payable in accordance with sub section (1) of Section 50 of the GST Act. The impugned demand has been set aside only on the ground of the breach of the principles of natural justice by granting liberty to the respondents to initiate action in accordance with law obviously for recovery of interest. — The Union of India, The State of Karnataka, The Superintendent Office of Central G.S.T Vs. LC Infra Projects Pvt., Ltd., (Formerly Known As Laxmi Constructions) [2020] 22 TAXLOK.COM 089 (Karnataka)