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2022 (8) TMI 978 - HC - GSTLiability of Interest - whether liability of interest under Section 50 of the JGST Act can be raised without initiating any adjudication proceeding either under Section 73 or 74 of the JGST Act in the event assessee has rai sed a dispute towards liability of interest? - HELD THAT:- The reference may be made to the case ofMAHADEO CONSTRUCTION CO. VERSUS THE UNION OF INDIA, ASSISTANT COMMISSIONER, CENTRAL GOODS & SERVICES TAX AND CENTRAL EXCISE, SUPERINTENDENT, CENTRAL GOODS & SERVICES TAX AND CENTRAL EXCISE [2020 (4) TMI 666 - JHARKHAND HIGH COURT] wherein this Court has held that it appears that if any assessee disputes the liability of interest under Section 50 of the JGST Act then the revenue will have to follow the specific procedure as stipulated under Section 73 or 74 of the JGST Act. In the instant case admittedly a notice was issued to the petitioner dated 6.11.2018 thereafter, the petitioner duly replied in form of objection with regard to non payment of interest vide its reply dated 9.1.2019. However the respondent department vide letter dated 28.1.2019 repeated its earlier stand and refused to accept the petitioner’s stand and the petitioner was directed to pay the balance amount of Rs.40,71,403/- towards interest payment after adjustment of refund amount sanctioned in favour of the petitioner. Thus, it clearly transpires that the respondents have not followed the procedure as enshrine d in Section 73 or 74 of the JGST Act. Thus the issue involved in the writ applications is squarely covered by the decision passed by this Court in the case of Mahadeo Construction. The matter is remitted back to the re venue to initiate a fresh proceeding with regard to the liability towards interest under Section 50 of JGST Act in accordance with law as stipulated in JGST Act. It goes without saying that after following the procedure and dependant on the proceedings, fresh refund order be issued in accordance with law - application allowed.
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