GST: Whether interest under section 50 can be demanded on gross tax liability?

Utkal Automobiles Pvt. Ltd. Vs Union of India & Others (Orissa High Court)

1. This matter is taken up by virtual/physical mode.

2. Questioning the jurisdiction of the Assessing Authority in levying interest under Section 50 of the Central Goods and Services Tax Act, 2017 (in short ‘CGST Act’) on the gross GST liability before adjusting input tax credit available in the credit ledger vide Demand Information Notice DIN-20200262WJ00005DF3DE in Communication bearing C.No. GST/01/INTEREST/BBSR-IX/2020/64, dated 18^th February, 2020 (Annexure-3) for belated payment of tax for the periods 2017-18, 2018-19 and 2019-20 (upto December, 2019), the petitioner has approached this Court invoking extraordinary jurisdiction under Article 226/227 of the Constitution of India with the following prayers:

“i) issue a writ in the nature of certiorari quashing the DIN dated 20.02.2020 levying interest by the opposite party No.4 under Annexure-3;

ii) issue a writ in the nature of mandamus or issue any appropriate writ declaring that the interest under Section 50(1) is to be levied on the payment of tax by electronic cash ledger and not electronic credit ledger;

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