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2019 (12) TMI 779 - KERALA HIGH COURTRecovery of the amount of interest due - Section 50 of the Central Goods and Services Tax Act, 2017 - garnishee proceedings initiated under Section 79 (1) (c) of the said Act - HELD THAT:- Prima facie we were not at all convinced that there existed any legal ground to interfere with the impugned order passed by the learned Single Judge. But learned counsel for the appellant/petitioner had pointed that, Ext.P20 notice was issued under Section 79 without adverting to the contentions raised against Ext.P16 notice through Exts.P18 and P19 reply submitted by the petitioner to respondents 1 & 2. Going by provisions contained in Section 50 of the CGST Act, we are of the opinion that the accrual of interest mentioned therein is automatic when the tax due as conceded in the return is not remitted along with the return. However, when the appellant/petitioner had raised contentions refuting their liability for payment of interest as calculated by the respondent, the theory of audi alteram partem will come into play. Therefore we are of the opinion that a direction to the 3rd respondent for consideration of Ext.P18 and P19, before proceeding with the coercive steps, would suffice to meet the ends of justice. Both the writ appeal as well as the writ petition are hereby disposed of by directing the 3rd respondent to consider Ext.P18 and P19 objections filed by the petitioner against the proposal intimated in Ext.P16, after affording an opportunity of personal hearing to the petitioner or to his representative.
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