Case Law Details

Case Name : Srinidhi Marketing Vs Union of India (Andhra Pradesh High Court)
Appeal Number : SCN in Write Petition No. 4769 of 2020
Date of Judgement/Order : 26/02/2020
Related Assessment Year :
Courts : All High Courts (5998) Andhra Pradesh HC (95)

Srinidhi Marketing Vs Union of India (Andhra Pradesh High Court)

Considering facts that as per Section 50 of the Central Goods and Services Act, 2017, interest is payable on the delayed payment of tax and that as per the interest statement filed along with the impugned letter, dated 07.02.2020, there was delay in filing GSTR-3B and hence, interest on ‘cash set off’ and ‘ITC set off’ has been calculated and payment thereof has been asked for, recovery of interest against the petitioner, insofar it relates to `ITC set off, shall remain stayed.

FULL TEXT OF THE HIGH COURT ORDER / JUDGEMENT

WHEREAS the Petitioner above named through its Advocate SRI.BATTU SRINIVASA RAO presented this Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue an appropriate writ, order or direction particularly in the nature of Writ of Certiorari calling for the connected records relating to the impugned communications / letter dated 07-02-2020 vide Annexure-P1 in Ref. C. No. IV/16/30/2020-KKD TOWN / DIN-20200255YJ00006N8D3F seeking to recover the interest of Rs.5,95,183/- under section 50(1) of the CGST Act 2017 by holding it as illegal, arbitrary, unjust, without authority of law and without jurisdiction impinging Articles 14, 19(1)(g) and 265 of the Constitution of India;

AND WHEREAS the High Court upon perusing the petition and affidavit filed herein and upon hearing the arguments of SRI.BATTU SRINIVASA RAO,Advocate for the Petitioner, Sri B.Krishna Mohan, learned Assistant Solicitor General of India, accepts notice on behalf of respondent Nos.1 and 2 and of Sri Suresh Kumar Routhu, learned standing counsel for Central Tax, accepts notice on behalf of respondent No.3, directed issue of notice to the Respondents herein returnable within four weeks to show cause as to why this WRIT PETITION should not be admitted.

You viz:

1. The Secretary to the Government of India, Ministry of Finance, Department of Revenue, Union of India, North Block, NEW DELHI.

2. The GST Council, 5th Floor, Tower Noll, Jeevan Bharathi Building, Janpath Road, Connaught Place, NEW DELHI – 110 001.

3. The Superintendent of Central Tax, Kakinada Town, CGST Range, D.No. 16-23­62/1/2A, GST Building, Near Dairy Farm Center, Pallamraju Nagar, Kakinada – 533 001 East Godavari District.

are directed to show cause either appearing in person or through an Advocate, as to why in the circumstances set out in the petition and the affidavit filed therewith (copy enclosed) this WRIT PETITION should not be admitted before 27.03.2020, on which date the case stands posted for hearing.

IA NO: 1 OF 2020

Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to stay recovery of the amount as interest mentioned in the impugned communication, dated 07-02­-2020, pending disposal of Writ Petition No. 4769 of 2020, on the file of the High Court.

THE COURT MADE THE FOLLOWING ORDER:

Heard on the question of admission as well as interim relief.

Sri B.Srinivasa Rao, learned counsel, appears on behalf of the petitioner.

Sri B.Krishna Mohan, learned Assistant Solicitor General of India, accepts notice on behalf of respondent Nos.1 and 2 and prays for time to obtain instructions.

Sri Suresh Kumar Routhu, learned standing counsel for Central Tax, accepts notice on behalf of respondent No.3 and prays for time to obtain instructions.

Issue notice before admission, on payment of process fee, if not already paid, within three working days, returnable within four weeks.

Considering facts that as per Section 50 of the Central Goods and Services Act, 2017, interest is payable on the delayed payment of tax and that as per the interest statement filed along with the impugned letter, dated 07.02.2020, there was delay in filing GSTR-3B and hence, interest on ‘cash set off’ and ‘ITC set off’ has been calculated and payment thereof has been asked for, recovery of interest against the petitioner, insofar it relates to `I.T.C. set off, shall remain stayed.

weeks. List along with W.P.No.4734 of 2020 ‘for analogous hearing’ after four weeks.

Download Judgment/Order

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