Judgment
1
2026:CGHC:21601
NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR WPT No. 115 of 2019 Vandana Global Ltd. Through The Authorized Signatory, Sanjay Sharma, S/o Shri Bhagirath Sharma, Aged About 48 Years, A-104, Akriti Vihar, Main Road, Amlidih, Opp. Sbi Atm, Raipur Chhattisgarh, District : Raipur, Chhattisgarh
... Petitioner(s) versus 1. Principal Commissiioner Central Gst Central Excise Building, Tikra Para, Dhamtari Road, Raipur, Chhattisgarh, District : Raipur, Chhattisgarh 2. Commissioner Sgst, North Block, Sector-19, Atal Nagar, Raipur Chhattisgarh,
District
:
Raipur,
Chhattisgarh 3. Assistant Commissioner Sgst, North Block, Sector-19, Atal Nagar, Raipur Chhattisgarh, District : Raipur, Chhattisgarh 4. Goods And Service Tax Network Through Chairman, Address- East Wing, 4th Floor, World Mark- 1, Aerocity, New Delhi -110037, District : New Delhi, Delhi
... Respondent(s) For Petitioner : Mr. Bhishma Ahluwalia, Advocate along with Ms. Shalini Kashyap, Advocate For Respondents No. 1 and 4 : Mr. Maneesh Sharma, Advocate For Respondents No. 2 and 3 : Ms. Anuradha Jain, Dy. G.A.
Hon’ble Shri Justice Rakesh Mohan Pandey Judgment On Board
2 8.5.2026 1) By way of this petition, petitioner has sought following reliefs:- 10.1 It is prayed that this Hon'ble Court may kindly be pleased to issue a Writ in nature of Certiorari and/or any other appropriate writ quashing and setting asideimpugned demand notices dated 8.7.2019by declaring the same to be illegal and in-operative in law to the extent it seeks to demand interest on entire output tax liability without allowing reduction of valid input tax credit available to the Petitioner.
10.2 This Hon'ble High Court may kindly be pleased to issue Writ in the nature of mandamus and/or any appropriate writ to hold that the Respondent No. 1 & 2 while executing its administrative function through the GSTN Portal is illegal to the extent it is not allowing the Petitioner to pay its tax dues partly through its credit register unless complete tax payment is made; and 10.3 This Hon'ble Court may kindly be pleased to issue Writ in nature of mandamaus
and/or
any
other appropriate
writ
directing
the Respondent No. 1, 2 &5 to reconfigure the online GSTN Portal in line with the legal provisions.
10.4 This Hon'ble Court may kindly be pleased to issue Writ in the nature of Mandamus and/or any appropriate writ commanding/directing Respondents No.
3 to recompute the interest liability for delay in payment of tax after considering admissible and available credit as utilized on the due date for payment of output tax liability;
10.5 Any other relief/reliefs which this Hon'ble Court may think fit and proper in the facts and circumstances of the case, with cost of the petition may also please be granted to the petitioners.
3 2) Learned counsel for the petitioner submits that Assistant Commissioner SGST, Raipur has issued a show cause notice against the petitioner on 8.7.2019 making demand of interest on late tax payment. He further submits that an amendment has been inserted in the proviso appended to Section 50 of Central Goods and Service Tax Act, 2017 [hereinafter to be referred as ‘Act of 2017’] with retrospective effect which mandates interest payments for delayed GST only on net cash liability w.e.f. 1st July, 2017. He contends that in light of the afore-stated amendment, the show- cause notice deserves to be set aside.
3) On the other hand, learned counsel appearing for the respective respondents would oppose. They submit that petitioner is required to pay the interest on the delayed payment of tax for cash portion.
4) I have heard learned counsel for the parties and perused the material available on record.
5) By gazette notification dated 1.6.2021, following amendment has been inserted in Section 50 of Act of 2017 :- 112. In section 50 of the Central Goods and Services Tax Act, in sub-section (1), for the proviso, the following proviso shall be substituted and shall be deemed to have been substituted with effect from the 1st day of July, 2017, namely:- "Provided that the interest on tax payable in respect of supplies made during a tax period and declared in the return for the said period furnished after the due date in accordance with
4 the provisions of section 39, except where such return is furnished after commencement of any proceedings under section 73 or section 74 in respect of the said period, shall be payable on that portion of the tax which is paid by debiting the electronic cash ledger.".
6) Taking into consideration the amendment inserted in Section 50 of Act of 2017, it is apparent that petitioner is required to make interest payments for delayed GST only on net cash liability w.e.f.
1st July, 2017. Therefore, the matter is remitted back to the respondent authorities to decide it afresh after affording due opportunity of hearing to the petitioner, strictly in accordance with amendment inserted in Section 50 of Act of 2017.
7) Accordingly, this petition stands disposed.
Sd/- (Rakesh Mohan Pandey) JUDGE A j i n k y a Digitally signed by AJINKYA PANSARE Date:
2026.05.11 10:37:37 +0530