TMI Blog2021 (1) TMI 703X X X X Extracts X X X X X X X X Extracts X X X X ..... s clarified that amendment in section 50(1) has been made effective prospectively w.e.f. 01.09-2020 due to certain technical limitations, however for present no recoveries for interest charged on gross liability will be recovered for the past period as well by the central and state tax administration. That in the light of aforesaid submissions, it is stated that no recovery will be made for interest charged on delayed payment of tax which has been made by the taxpayer debiting the credit ledger. That however, in terms of amended section - 50 (1), it is prayed before the Hon'ble court that the taxpayer may be directed to pay the interest on delayed payment of tax which has been made by debiting the cash ledger that is on net liabil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... necessary for exercise of power under section 50 read with section 75 (12) of the act the respondent assessing authority could not have passed the impugned order and the consequential demand notice which is accordingly without jurisdiction and liable to be quashed by this Hon'ble court; d) For further holding and a declaration that the case of the petitioner is squarely covered by the judgement dated 06.01.2020 of Hon'ble Madras High Court in the matter of Refex Industries limited Vs Asst Commissioner of CGST and Central Excise wherein it has been held that the liability of interest under section 50 of the act would be attracted only in case of the tax liability discharged from out of the cash ledger; e) For further holdin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ght of aforesaid submissions, it is stated that no recovery will be made for interest charged on delayed payment of tax which has been made by the taxpayer debiting the credit ledger. 13. That however, in terms of amended section - 50 (1), it is prayed before the Hon'ble court that the taxpayer may be directed to pay the interest on delayed payment of tax which has been made by debiting the cash ledger that is on net liability. Additionally, our attention is invited to the circular issued by the Central Board of Indirect Taxes Customs (CBIC), which reads as under:- Interest on delayed payment of GST:CBIC Posted on 26th August 2020 5:34 PM by PIB Delhi Central Board of Indirect Taxes Customs (CBIC) today clarified that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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