Bangalore International Airport Limited Vs Union of India Through Revenue Secretary (Karnataka High Court)
Karnataka High Court held that levy of interest u/s. 50 of the Central Goods and Services Tax Act, 2017 on delayed filing of return not justified as cash is deposited to Electronic Cash Ledger on or before the due date and the amount towards tax by way of Electronic Credit Ledger was available in the Electronic Credit Ledger.
Facts- The present petition is preferred by the petitioner. Notably, show cause notice was issued by the respondents to the petitioner, calling upon the petitioner to pay interest in a sum of Rs.1,33,21,214/- towards delayed payment of tax. The petitioner submitted a reply dated 11.03.2020, giving the details and breakup as to how the payment of the tax was made by way of cash on or before the due date i.e., 20th of the succeeding / following month, and that the remaining portion was available in the Electronic Credit Ledger of the petitioner by way of input tax credit, and consequently, merely because the petitioner did not submit returns as on the last date for payment of tax, but subsequently, the delayed filing of returns could not have been made the basis to fasten the liability to pay the interest on the said tax which had undisputedly been paid /credited on or before the due date, which is 20th of the following month.
