Section 50 of the CGST Act — Interest –- The petitioner prayed for quashing the letter dated 6th November 2018 whereby he has been called upon to pay interest for a sum of Rs. 72,49,126/-on account of alleged irregular ITC taken by it on 24th August 2017 and reverted on 13th August 2018. The petitioner also challenged the part of refund sanction order dated 9th November 2018 and challenged the order dated 31st January 2020 passed by the Appellate Authority, whereby the appeal was rejected. The Petitioner submitted that it is not liable to pay interest for such mistake in filing GSTR-3B for the month of July 2017 wherein inadvertently he had included the transitional credit amount of Rs. 3,11,43,255/-again. The counsel for the petitioner submitted that at no point of time the amount of Rs. 3,11,43,255/-claimed as transitional credit under GSTR TRAN-1 was availed by it for its output tax liability. Therefore, no liability of interest would be attracted in terms of Section 50(3) of the Act. The court placed its reliance upon the judgment in respect of M/s Mahadeo Construction, and observed that if any assessee disputes the liability of interest under Section 50  then the revenue will have to follow the specific procedure as stipulated under Section 73 or 74 of the Act. In this case, the respondents have not followed the procedure. Thus the issue involved is squarely covered by the decision passed by this Court.

Held that:- The Hon’ble High Court set aside the order and Appellate Order and remanded the matter back to the revenue to initiate a fresh proceeding with regard to the liability towards interest in accordance with law and after following the procedure and dependant on the proceedings, fresh refund order be issued in accordance with law.