Section 50 of the CGST Act, 2017—Interest - The petitioner challenged impugned letter dated 28th February 2020 / 2nd March 2020, whereby Interest amounting to Rs. 83,96,873/- has been levied, on the ground that since the liability has been disputed by the petitioner, the same could not have been levied without any adjudication proceeding under Section 73 or 74 of the Act. The counsel for the petitioner submitted that the issue under consideration is fully covered by the decision rendered by the Coordinate Bench of this Court in the case of Mahadeo Construction Company Vrs. Union of India & Ors. dated 21st April 2020. The court observed that present petition stands covered by the ratio rendered by this Court in the case of Mahadeo Construction Co., as despite disputing the liability towards interest, the revenue has raised a demand, without initiating any adjudication proceedings under Section 73 or 74 of the Act, 2017.

Held that:- The Hon’ble High Court quashed the impugned demand contained in letters dated 28th February 2020 / 2nd March 2020.