2021 (2) TMI 765 - HC - GST

Seeking permission for withdrawal of petition - Levy of interest - delay in filing of GSTR-3B Returns resulting into delayed payment of Gross Tax Liability for the Financial year 2019-20 up to December 2019 - section 50 of the Goods Service Tax Act 2017 - HELD THAT - In view of the request made by learned counsel for the petitioner the writ petition is dismissed as withdrawn.

Summary

Issues:
1. Quashing of order imposing interest under the Goods & Service Tax Act, 2017 for delay in filing returns.
2. Direction to pay interest for the financial year 2017-18.
3. Legality of demanding interest based on the date of filing returns.
4. Legality of realizing interest without show cause notice or adjudicatory order.

Analysis:

1. The petitioner sought relief in the form of a writ to quash an order imposing interest under the Goods & Service Tax Act, 2017 for delayed filing of returns, resulting in delayed payment of tax liability for the financial year 2019-20. The petitioner challenged the order issued by the respondent imposing liability to pay interest under Section 50 of the Act. The petitioner requested the court to set aside the said order, citing it as arbitrary and illegal.

2. Another issue raised in the petition was the direction to pay interest for the financial year 2017-18 within a specified period failing which recovery proceedings would be initiated. The petitioner sought a writ to quash this order issued by the respondent, claiming it to be unlawful and in violation of extant laws. The petitioner contested the imposition of interest without proper justification or legal basis.

3. The legality of demanding interest based on the date of filing returns was also challenged by the petitioner. The petition sought a writ of Mandamus declaring the respondent's action of demanding interest based on the actual date of filing returns as arbitrary, illegal, and contrary to the provisions of Section 50 of the Central Goods and Service Tax Act, 2017. The petitioner argued that such a method of determining the due date of payment of tax was unjust and unconstitutional.

4. Furthermore, the petitioner challenged the respondent's authority in realizing a substantial amount of interest without issuing any show cause notice or passing an adjudicatory order. The petition requested a writ of Mandamus to declare this action as illegal, arbitrary, and violative of Article 265 of the Constitution of India. The petitioner contended that the demand for interest without due process was unjust and unconstitutional.

In the final disposition, the court noted the petitioner's counsel seeking permission to withdraw the petition, and accordingly, the writ petition was dismissed as withdrawn.