Section 50 of the CGST Act, 2017 —Interest – The Petitioner challenged an order dated 19 January 2022 directing the Petitioner to pay an amount towards interest for delayed payment. The respondent directed that the Petitioner had merely deposited the amount in the Electronic Cash Ledger but did not accept it as a tax liability and deposited by furnishing GSTR-3B Return and this cannot be considered as a payment of tax and therefore, as per Section 50 , the Petitioner is liable to pay the interest as specified. The Counsel for the Petitioner submitted that there is no distinction made between this period in the impugned order and the Petitioner is liable to pay the interest for the entire period. The amounts which were available to the Petitioner as the ITC should be considered while calculating the liability under Section 50 of the CGST Act, 2017.

Held that:- The Hon’ble High Court directed the respondent to give an opportunity to the Petitioner and to give audience to the representative of the Petitioner and thereafter, pass a suitable order. Till the final order is passed, no coercive steps be taken against the Petitioner based on the impugned order dated 19 January 2022.