Prasanna Kumar Bisoi vs. Union Of INDIA
Held
The Court directed the Superintendent of Central GST to consider the petitioner's representation regarding the interest demand on ITC. This consideration should be done expeditiously, keeping in mind the decision of the 39th GST Council meeting.
Facts
The petitioner filed GST returns for financial years 2017-18, 2018-19, and 2019-20 belatedly and availed Input Tax Credit (ITC). The GST authorities demanded interest on the availed ITC. The petitioner represented against this demand, citing a GST Council decision.
Key Issues
Whether interest is leviable on Input Tax Credit availed, especially in light of a GST Council decision to charge interest on net cash tax liability.
Sections Cited
Section 50 (1)
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21.08.2020
BP
Heard learned counsel for the petitioner and Mr.T.K.Satpathy, learned counsel for Central Excise.
The grievance of the petitioner in this Writ Petition is that he is registered under Central Goods and Service Tax having GSTIN No.21AJIPB2032N1ZO. He has filed the returns for the financial year 2017-18, 20018-19 and 2019-20 at belated stage and availed Input Tax Credit at the time of filing GSTR-3B returns, as Works Contractor. The Superintendent, Central GST and Central Excise, Berhampur – opposite party No.3 demanded interest under Section 50 (1) of the C.G.S.T Act, 2017 in respect of the above three financial years for Rs.2,24,487/- on 04.03.2020 on the head that demand of interest is payable on ITC set off. Hence the present Writ Petition.
Learned counsel for the petitioner submitted that in the 39th meeting of GST Council held on 14.03.2020 it was decided that interest for delay in payment of GST is to be charged on the Net Cash Tax Liability w.e.f. 01.07.2017 retrospectively but not
The judgment continues below.
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