Civil Writ Jurisdiction Case No. 11621 of 2023

SINCON INFRASTRUCTURE PVT. LTD. v. UNION OF INDIA

Date Issued: 19 April 2024
Source: 2024 (85) G.S.T.L. 391 (Pat.)
Views: 11

Summary

Interest - Delayed payments of tax - Period 2017 to 2019 - Petitioner-assessee failed to pay interest on delayed payment through Form DRC-3 in financial year 2018-19 - Assessee also failed to pay interest on delayed cash payment through Form DRC-3 in financial year 2017-18 - Revenue issued a peremptory order of recovery demanding payment of interest - HELD : As per Section 50(1) of CGST Act, 2017 interest liability arises automatically on delayed filing of returns, irrespective of whether payment is made from Electronic Credit Ledger or Electronic Cash Ledger - It cannot be said that interest was payable only when there was a delayed furnishing of return and debit made from Electronic Cash Ledger was rejected - Interest liability is not dependent on availability of credit in Electronic Credit Ledger, as tax payment occurs only upon filing of returns - Therefore, instant writ petition was to be dismissed stating that a remand for said assessment periods would be unnecessary, as interest liability applies even if there was credit available in Electronic Credit Ledger - Section 50 of Central Goods and Services Tax Act, 2017 - Section 50 of Bihar Goods and Services Tax Act, 2017.…