Principles of natural justice must be complied with before demanding GST interest

Union of India Vs LC Infra Projects (P.) Ltd. (Karnataka High Court)

Before penalizing the assessee by making him pay interest, the principles of natural justice ought to be complied with before making a demand for interest under sub section (1) of Section 50 of the GST Act. Consequence of demanding interest and non-payment thereof is very drastic.

The impugned demand has been set aside only on the ground of the breach of the principles of natural justice by granting liberty to the respond

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