AP HC stays recovery of Section 50 Interest on ITC under GST

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.

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