Section 50 of the CGST Act, 2017 — Interest –– The petitioner challenged the order dated 11.09.2018 by which the appeal preferred has been rejected on the ground that the petitioner has not paid the amount of tax, interest, fine, fee and penalty arising from the impugned order dated 03.08.2018, which is in violation of Section 107 (6) of the Act, 2017. Vide order dated 03.08.2018, the petitioner was directed to pay interest to the tune of Rs. 72,69,975/-. The petitioner contended that there is no tax liability with the petitioner because on pet food, the petitioner has neither availed any input credit nor charged the same with the customer to whom it was sold, however, the petitioner on his own set-off the tax liability in the return submitted in the month of March 2018 for the month of July 2017 to September 2017, yet the authority has sought interest. The court observed that during pendency of the writ petition, the Government vide notification dated 28.03.2021 has amended Section 50 of the Act, which has been made effective from 01.07.2017, provides that the interest on tax payable shall be levied on that portion of tax i.e. paid by debiting the electronic cash ledger.

Held that:- The Hon’ble High Court set aside the impugned order dated 11.09.2018 and directed the appellate authority to examine whether in the given facts and circumstances of the case, the petitioner can be extended benefits of amendment made in Section 50 or not and whether the petitioner can take its advantage or not to over come the rider of Section 107(6) which is a condition precedent for maintaining the Appeal.