Interest demand under GST: conditional verification of undisputed payments, with fresh departmental reconsideration if established.

Interest demand under the CGST Act was dealt with by a conditional verification and reconsideration mechanism: the petitioner was directed to demonstrate, to the department's satisfaction, any undisputed payments within the stipulated time. If that showing is made, the impugned notice is to be set aside and the competent authority must examine the petitioner's stand afresh and pass a fresh order in accordance with law. If the reconsidered decision remains adverse, the petitioner may pursue the statutory appeal remedy under Section 107 of the CGST Act.

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Issues: Whether the writ petition challenging the interest demand under the Central Goods and Services Tax Act, 2017 should be disposed of by directing the petitioner to demonstrate undisputed payments and, on such demonstration, require the department to reconsider the matter.

Analysis: The dispute concerned interest on delayed payment under Section 50(1) of the Central Goods and Services Tax Act, 2017. The parties placed the matter in the same framework as an earlier order and agreed to a similar course. The Court therefore directed the petitioner to demonstrate, to the satisfaction of the departmental , any undisputed payments within the stipulated time. If such demonstration is made, the impugned notice is to stand set aside and the competent authority must consider the petitioner's stand and pass a fresh order in accordance with law. If the decision is adverse, the petitioner is left to the statutory appellate remedy under Section 107 of the Central Goods and Services Tax Act, 2017.

Conclusion: The writ petition was disposed of by issuing conditional directions for verification and reconsideration, with recourse to the statutory appeal if necessary.

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