The primary challenge in this writ petition is to the circular which prescribes that interest payable on delayed payment of tax can be recovered under the provisions of Section 79 of the CGST Act read with Section 75(12).
Section 50 of the CGST Act — Recovery of Interest – The petitioners challenged circular dated 10th February 2020, which prescribes that interest payable on delayed payment of tax can be recovered under the provisions of Section 79 of the Act read with Section 75(12). The petitioner on 28th January 2020 was intimated to pay the interest applicable over the tax in full, failing which he would face proceedings under Section 73(1), whereas the subsequent summary order dated 26th February 2020 sought to recover the interest amount instead of initiating any proceeding under Section 73(1) only on account of issuance of the circular dated 10th February 2020. The petitioner counsel has questioned the validity of the circular and submitted that in case the interest liability is disputed, automatic process of recovery by resorting to Section 79 of the Act would preclude any adjudication process and leave the assesse with no remedy. The respondent’s counsel sought time. They were allowed four weeks' time to file counter affidavit. Rejoinder, if any, be filed within two weeks thereafter.
Held that:- The Hon’ble High Court listed the matter after six weeks.
The primary challenge in this writ petition is to the circular which prescribes that interest payable on delayed payment of tax can be recovered under the provisions of Section 79 of the CGST Act read with Section 75(12).
Section 50 of the CGST Act — Recovery of Interest – The petitioners challenged circular dated 10th February 2020, which prescribes that interest payable on delayed payment of tax can be recovered under the provisions of Section 79 of the Act read with Section 75(12). The petitioner on 28th January 2020 was intimated to pay the interest applicable over the tax in full, failing which he would face proceedings under Section 73(1), whereas the subsequent summary order dated 26th February 2020 sought to recover the interest amount instead of initiating any proceeding under Section 73(1) only on account of issuance of the circular dated 10th February 2020. The petitioner counsel has questioned the validity of the circular and submitted that in case the interest liability is disputed, automatic process of recovery by resorting to Section 79 of the Act would preclude any adjudication process and leave the assesse with no remedy. The respondent’s counsel sought time. They were allowed four weeks' time to file counter affidavit. Rejoinder, if any, be filed within two weeks thereafter.
Held that:- The Hon’ble High Court listed the matter after six weeks.