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TMI Blog2020 (10) TMI 1173X X X X Extracts X X X X X X X X Extracts X X X X ..... ersy involved and the reliefs claimed. 4. Petitioner is a limited company having its registered office at Andheri (East), Mumbai. It is engaged in the business of manufacture of automotive components. It is registered under the Central Goods and Service Tax Act, 2017 as well as under the Maharashtra Goods and Service Tax Act, 2017. 4.1. Petitioner has stated that it has been availing input tax credit of the taxes charged by the suppliers and remitting goods and service tax (GST) on its output supplies after deducting the input tax credit. However, it has been admitted by the petitioner that there was some delay in filing the monthly returns in form GSTR-3B and GSTR-1, details of which have been mentioned in paragraph 4.14 of the writ petition. 4.2. When the petitioner was intimated about the payment of interest on delayed payment of taxes for certain periods, it remitted the interest computed on net tax liability. Respondent No.5 sent email dated 14.02.2020 levying interest of Rs. 5,06,06,060.00 for late payment of GST for the months from July, 2017 to December, 2019. It is stated that the interest was computed on gross liability. By another email dated 25.02.2020, respondent No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore be struck down as violative of Articles 14 and / or 19 of the Constitution; e) That this Hon'ble Court may issue a writ of certiorari or any other appropriate writ or order to quash the recovery proceedings initiated vide letters dated 25.02.2020 by respondent No.5 enclosed as Exhibit-E as violative of Articles 14, 19 and 300A of the Constitution being unreasonable, arbitrary, oppressive, excessive and issued without following due process of law; f) That this Hon'ble Court may issue a writ of certiorari or any other appropriate writ or order to quash the recovery proceedings initiated vide letters dated 09.07.2020 by respondent No.4 enclosed as Exhibit-F as violative of Articles 14, 19 and 300A of the Constitution being unreasonable, arbitrary, oppressive, excessive and issued without following due process of law; g) That this Hon'ble Court may, in the alternative, issue a writ of mandamus directing that the interest be calculated on net liability basis and not on gross liability basis; h) Direct the respondents to refund the interest already remitted; i) for costs; and j) for such further and other reliefs as the Hon'ble Court may deem fit and proper in the facts a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cision taken in the 39th meeting of GST Council. It was stated that this would ensure full relief to the taxpayers as decided by the GST Council. The press release was issued in response to lot of queries with respect to notification dated 25.08.2020. 9. During the hearing, respondents contested the contentions of the petitioner and in respect of the press release of the Board, it was stated that the same was not officially communicated to the field formations. 10. The matter was heard at length on 10.09.2020 when it was reserved for delivery of judgment. Thereafter parties filed written submissions. In the written submissions filed on behalf of the respondents, a copy of the administrative instructions of the Board dated 18.09.2020 was fairly annexed thereto. It appeared to us that the said administrative instructions addressed the grievance of the petitioner. Therefore, the case was listed again on 15.10.2020 on which date the following order was passed:- "1. Though arguments were concluded and the matter was reserved for judgment on 10th September, 2020, administrative instructions dated 18th September, 2020 of the Central Board of Indirect Taxes and Customs have been brough ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 01.07.2017. Consequently, a press release, dated 26.08.2020 was issued to clarify the position. Further, in order to implement the decision of the Council in its true spirit, and at the same time working within the present legal framework, it has been decided to address the issue through administrative arrangements, as under: a. For the period 01.07.2017 to 31.08.2020, field formations in your jurisdiction may be instructed to recover interest only on the net cash tax liability (i.e. that portion of the tax that has been paid by debiting the electronic cash ledger or is payable through cash ledger); and b. wherever SCNs have been issued on gross tax payable, the same may be kept in Call Book till the retrospective amendment in section 50 of the CGST Act is carried out. 4. Difficulty, if any, in the implementation of these instructions may please be brought to the notice of the Board." 13. From a perusal of the above, it is seen that amendment to section 50 of the Central Goods and Service Tax Act, 2017 was introduced by Finance (No.2) Act, 2019 for charging interest on the net cash tax liability. The said amendment was made effective prospectively from 01.09.2020 vide the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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