Ms Bgr Mining And Infra Limited Through Its Authorized Signatory Jetti Pavankumar Reddy vs. The State Of Jharkhand Through The Secretary Cum Commissioner State Tax Department

Held

The Court held that the issue relating to the levy of interest on net tax liability under Section 50 of the JGST Act, 2017, shall stand governed by the Court's previous order dated January 21, 2021, passed in a batch of writ petitions concerning the same petitioner for a different period. The Court noted that the respondent State had reiterated its stand from the previous case, acknowledging that State authorities are imposing interest on net tax liability as per CBIC administrative instructions. Therefore, no fresh determination on this issue was required. The Court disposed of the present writ petitions in the manner indicated in the previous order, which had reserved liberty for the petitioner to approach the Court again if the State chose to realize interest on gross tax liability for the subject period. The reasoning is based on the principle of consistency and adherence to prior judicial pronouncements and administrative directives, especially when the parties and the core issue remain the same.

Facts

The petitioner, M/s BGR Mining & Infra Limited, challenged appellate orders dated February 22, 2021, passed by the Joint Commissioner of State Tax (Appeal), Dhanbad Division. These orders upheld adjudication orders levying interest under Section 50 of the Jharkhand Goods and Services Tax Act, 2017, on the petitioner's gross tax liability for various periods between February 2019 and July 2019. The petitioner argued that interest should be levied only on net tax liability, which they had already discharged. They relied on a previous High Court order dated January 21, 2021, concerning the same petitioner for an earlier period, which had disposed of writ petitions based on administrative instructions from CBIC and the State's undertaking to levy interest on net tax liability. The State respondents acknowledged their previous stand and the High Court's prior order.

Key Issues

1. Whether the Joint Commissioner of State Tax (Appeal) erred in upholding the levy of interest under Section 50 of the Jharkhand Goods and Services Tax Act, 2017, on the gross tax liability of the petitioner, contrary to the administrative instructions of the Central Board of Indirect Taxes and Customs (CBIC) and the State's previous stand before this Court? (Question of law and mixed fact and law, turning on Section 50 of the JGST Act, 2017, and CBIC Circular dated September 18, 2020). Petitioner's contentions: The appellate authority failed to consider this Court's order dated January 21, 2021, which dealt with an identical issue for the same petitioner and period. This Court's previous order was based on CBIC's administrative instructions and the State's assurance to levy interest on net tax liability. The respondent State, in its counter-affidavit, admitted the appellate authority's oversight due to inadvertence. Revenue/State's contentions: The State reiterated its stand as indicated in the supplementary affidavit filed in a previous writ petition, acknowledging that the issue of levy of interest on net tax liability is governed by CBIC administrative instructions and that State authorities are now imposing interest on net tax liability.