Section 50 and 54 of the CGST Act, 2017— Interest on Net Tax and Refund -- The petitioner challenged the notice for rejection of application for refund dated 5th December, 2019 along with corrigendum dated 18th December, 2019 and to direct respondent to refund the amount wrongly forfeited from the pending refund application of the petitioner. The petitioner sought a declaration that the liability to pay interest under Section 50 of the Act should be confined only to the net tax liability and no interest is payable on the available ITC and prayed for a direction to respondent to implement the decision taken in 31st and 39th GST Council Meetings. The petitioner submitted that principles of natural justice have been violated as no proper show cause notice was ever issued under Section 73 of the Act and no opportunity of hearing was granted to the petitioner.
Held that:-The Hon’ble High Court issued notice and listed the matter on 20th October, 2020.—Parnika Commercial And Estates Private Limited Vs. Union of India & Ors. [2020] 26 TAXLOK.COM 067 (Delhi)