Case Law Details
Parnika Commercial And Estates Private Ltd. Vs Union of India (Delhi High Court)
Bu this writ Petitioner had sought a declaration that the liability to pay interest under Section 50 of the Central Goods and Services Tax Act, 2017 is confined only to the net tax liability and no interest is payable on the available ITC.
High Court observed that for the period of 1st July, 2017 to 31st August, 2020 field formations have been instructed to recover interest only on the net cash liability i.e. that portion of the tax that has been paid by debiting the electronic cash ledger or is payable through cash ledger. In those cases where show case notices have been issued calling upon the noticees to make payment on gross tax liability, those have been directed to be kept in the Call Book till retrospective amendment is made in Section 50 of the CGST Act.
In view of the aforesaid decision taken by the Central Board of Indirect Taxes and Customs, grievance of the petitioner no longer survives.
Accordingly, the present writ petition is disposed of in accordance with the Administrative Instruction dated 18th September, 2020 issued by the Ministry of Finance through the Central Board of Indirect Taxes and Customs.
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