The larger issue involved in this litigation is whether interest on the belated payment of taxes as contemplated under Section 50 of the CGST Act is automatic or whether the same would have been determined after the explanation that may be offered by the assessee and the second issue is whether such liability could be gross tax liability or net tax liability after the adjustment of the input tax liability.
Section 50 of the CGST Act, 2017 — Interest –– The applicant prayed that pending the final disposal of this application, the operation, implementation and execution of the impugned garnishes notice and the further proceedings pursuant to the impugned notice dated 3rd February 2020 be stayed. The respondent submitted that the total liability of the writ applicant on account of interest is to the tune of Rs. 1,01,78,188/-. On the other hand, according to the writ applicant, at the most, his liability can be determined to the tune of Rs. 54,77,778/-. The counsel appearing for the applicant, submitted that the applicant shall deposit an amount of Rs. 10,00,000/- within a period of one week and the balance amount of Rs. 44,77,778/- shall be deposited in four monthly equal installments. The court observed that the writ applicant is entitled to some interim relief and granted relief in terms of paragraph No.21E.
Held that:- The Hon’ble High Court issued Notice to the respondents, returnable on 11th March 2020.
The larger issue involved in this litigation is whether interest on the belated payment of taxes as contemplated under Section 50 of the CGST Act is automatic or whether the same would have been determined after the explanation that may be offered by the assessee and the second issue is whether such liability could be gross tax liability or net tax liability after the adjustment of the input tax liability.
Section 50 of the CGST Act, 2017 — Interest –– The applicant prayed that pending the final disposal of this application, the operation, implementation and execution of the impugned garnishes notice and the further proceedings pursuant to the impugned notice dated 3rd February 2020 be stayed. The respondent submitted that the total liability of the writ applicant on account of interest is to the tune of Rs. 1,01,78,188/-. On the other hand, according to the writ applicant, at the most, his liability can be determined to the tune of Rs. 54,77,778/-. The counsel appearing for the applicant, submitted that the applicant shall deposit an amount of Rs. 10,00,000/- within a period of one week and the balance amount of Rs. 44,77,778/- shall be deposited in four monthly equal installments. The court observed that the writ applicant is entitled to some interim relief and granted relief in terms of paragraph No.21E.
Held that:- The Hon’ble High Court issued Notice to the respondents, returnable on 11th March 2020.