Case Law Details
Abis Export India Private Limited Vs State of Chhattisgarh (Chhattisgarh High Court)
Chhattisgarh High Court held that amendment to section 50 of the CGST Act, 2017, that interest shall be levied on that portion of tax paid by debiting the electronic cash ledger (i.e. net tax liability), is effective retrospectively from 1st July 2017.
Facts- The petitioner’s company approached the authority showing the difference in its GSTR 1 & GSTR 3B and sought directions from the authorities about the mechanism to rectify its return, but on account of the non-availability of the mechanism, the return could not be rectified. The petitioner was held liable for payment of interest of Rs. 72,69,975 after examining the GSTR 3B which is return as provided under Section 39 of the GST Act.
Conclusion- The amendment which has been made effective from 01.07.2017 clearly provides that the interest on tax payable in respect of supplies made during the tax paid and declared in the return for the said period furnished after the due date in accordance with the provisions of Section 39 of the Act, 2017 except where the such return is furnished after commencement of any proceedings under Section 73 or 74 of the Act, 2017 shall be levied on that portion of tax i.e. paid by debiting the electronic cash ledger, as such, the amendments are having retrospectively applicability effect, as such.
Held that in view of the amendment made by the Central Government, the writ petition is disposed of with a direction to the appellate authority to examine whether, in the given facts and circumstances of the case, the petitioner can be extended benefits of the amendment made in Section 50 of the Income Tax Act or not.
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