Interest under Section 50 is payable only on that portion of the tax which is paid by debiting the electronic cash ledger.
Section 50 of the CGST Act, 2017 — Interest – The petitioner challenged the impugned demand notice dated 14 May, 2019 in connection with interest under Section 50 relating to the Assessment Year 2017-18 and 2018-19. The petitioner submitted that during the pendency of this writ petition, Section 50 Sub-Section (1) of the GST Act has been amended by the Finance Act, 2021. The court observed that in view of this legal position as stands today, interest under Section 50 is payable only on that portion of the tax which is paid by debiting the electronic cash ledger. This interest amount of Rs. 1,22,283/- is mentioned in the petitioner’s supplementary affidavit dated September 24, 2019 and has not been disputed in the affidavit in opposition dated December 17, 2019.
Held that:- The Hon’ble High Court set aside of the impugned demand notice dated 14 May, 2019.
Interest under Section 50 is payable only on that portion of the tax which is paid by debiting the electronic cash ledger.
Section 50 of the CGST Act, 2017 — Interest – The petitioner challenged the impugned demand notice dated 14 May, 2019 in connection with interest under Section 50 relating to the Assessment Year 2017-18 and 2018-19. The petitioner submitted that during the pendency of this writ petition, Section 50 Sub-Section (1) of the GST Act has been amended by the Finance Act, 2021. The court observed that in view of this legal position as stands today, interest under Section 50 is payable only on that portion of the tax which is paid by debiting the electronic cash ledger. This interest amount of Rs. 1,22,283/- is mentioned in the petitioner’s supplementary affidavit dated September 24, 2019 and has not been disputed in the affidavit in opposition dated December 17, 2019.
Held that:- The Hon’ble High Court set aside of the impugned demand notice dated 14 May, 2019.