Assessee should approach GST Commissioner to seek relief for interest payment in instalments

The Best Recharge Vs Deputy Commissioner (ST) (Madras High Court)

Assessee should approach Commissioner under Section 80 of CGST Act to seek relief for payment of interest in instalments

The Hon’ble Madras High Court in Best Recharge v. Deputy Commissioner (ST) GST [W.P. (MD) NO. 9041 of 2024 and W.M.P (MD) NO. 8258 of 2024 dated April 15, 2024] directed the assessee to approach the Commissioner under Section 80 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) for seeking relief for payment of interest in monthly instalments pertaining to disputed tax already paid on account of excess wrongful availment of Input Tax Credit (“ITC”).

Facts:

M/s. Best Recharge (“the Petitioner”) had availed excess ITC than available in GSTR-2A; hence, the adjudicating authority initiated the proceedings to recover the tax along with interest on the excess credit availed by the Petitioner.

The Petitioner, prior to the adjudication order, deposited the excess claimed ITC. However, the adjudicating authority in the Order in Original dated September 02, 2022 levied the interest @ 24% on the excess ITC availed.

Aggrieved by the levy of interest, the Petitioner filed an appeal before the first appellate authority under Section 107 of the CGST Act.