Section 50 of the CGST Act, 2017 — Interest –-- The petitioner challenged the impugned notice dated 15.07.2019 and bank attachment notices dated 12.02.2020 under the provisions of Section 79(1) (c). The petitioner claimed that they are not liable to pay any interest as per the impugned demand on the ground that only in respect of the cash component mentioned in the impugned demand dated 22.01.2020, they are liable to pay interest. The court observed that the issue as to whether an assessee is liable to pay any interest for the alleged non payment of the credit component is covered by the decisions of this Court in the case of M/s.Sri Priyanga Agencies, vs. The Assistant Commissioner of CGST & Central Excise dated 08.12.2022 and the order dated 06.01.2020 passed in the case of M/s.Refex Industries Limited vs. The Assistant Commissioner of CGST & Central Excise.

Held that:- The Hon’ble High Court directed the petitioner to demonstrate to the satisfaction of Respondents 1 and 2 undisputed payments (if any) within three weeks. On satisfaction of respondents 1 and 2, the impugned notice will stand set aside and the respondents shall consider the stand of the petitioner and pass an order in a manner known to law. Since the bank account of the petitioner has been attached, in the event of the petitioner paying interest in respect of the cash component as estimated by the respondent pursuant to the aforementioned determination, the consequential order of attachment dated 12.02.2020 is directed to be raised by the 3rd respondent bank.