M/S. Hilton Garden Inn vs. The Commissioner Of Kerala Goods And Service Tax Department
Held
The Court ruled that interest under Section 50 is not payable for the period the GSTIN was cancelled, as the petitioner had no means to comply. However, interest could be levied for delays occurring after 20 days from the GSTIN restoration date (26.12.2017) for the period up to December 2017 and for subsequent months.
Facts
Petitioner's GSTIN was illegally cancelled, preventing timely GST payment and return filing from July 2017. After court intervention, the GSTIN was restored in December 2017, but authorities subsequently demanded interest under Section 50(1) for delayed tax remission from July 2017 to March 2018.
Key Issues
Can interest under Section 50 of the CGST/SGST Act be levied for delayed GST payment when the delay was caused by the illegal cancellation of the taxpayer's GSTIN? What is the correct period for calculating such interest under these circumstances?
Sections Cited
Section 50(1), Section 79
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH THURSDAY, THE 23RD DAY OF NOVEMBER 2023 / 2ND AGRAHAYANA, 1945 WP(C) NO. 25069 OF 2023 PETITIONER: M/S. HILTON GARDEN INN, UNIT OF MPG HOTELS AND INFRASTRUCTURE VENTURES PVT. LTD., PUNNEN ROAD, THIRUVANANTHAPURAM-695039, REPRESENTED BY ITS DEPUTY VICE PRESIDENT, FINANCE AND ACCOUNTS, MS. SUBHA JOSEPH. BY ADVS. SRI. ANIL D. NAIR SMT. TELMA RAJU SMT. AADITYA NAIR RESPONDENTS: 1 THE COMMISSIONER OF KERALA GOODS AND SERVICE TAX DEPARTMENT, THIRUVANANTHAPURAM, PIN – 695001. 2 SUPERINTENDENT, CENTRAL GST AND CENTRAL EXCISE, STATUE RANGE, 3RD FLOOR, GST BHAVAN, PRESS CLUB ROAD, THIRUVANANTHAPURAM, PIN – 695001. BY ADV. SRI. SREELAL N. WARRIER - SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23.11.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 25069 OF 2023 2 DINESH KUMAR SINGH, J. -------------------------- W.P.(C) No.25069 of 2023 ------------------------- Dated this the 23rd day of November, 2023 JUDGMENT
The present writ petition has been filed to set aside Exhibit P- 14 order whereby petitioner has been directed to remit the
The judgment continues below.
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