Tax Authorities Ordered to Recalculate Interest Demand Under CGST Act, Bank Account Attachment Continues Pending Review

HC ruled on a tax interest demand under CGST Act. The court directed tax authorities to re-compute the interest amount after hearing the petitioner's objections. The bank account attachment was maintained pending final determination. The case was disposed of without costs, requiring a fresh assessment of the interest demand within four weeks.

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Issues: Challenge to notice of demand of interest under Section 50 of the Central Goods and Services Tax Act, 2017 (CGST Act) for various months between July 2017 and October 2019.

Analysis:
The petitioner challenged a notice of demand of interest under Section 50 of the CGST Act for specific months. The petitioner did not respond to the notice but claimed that the computation of the demand was incorrect. The court directed the petitioner to file a reply to the notice, specifying the correct interest payable according to them. The authority was instructed to re-determine the amount considering a previous court decision within four weeks after hearing the petitioner.

The respondent had attached the petitioner's bank account in Axis Bank Limited, Anna Salai, Chennai, in Form GST DRC-13 due to the alleged demand for interest. The attachment was to continue until the re-computation of the amount was completed as per the court's directive. Both writ petitions were disposed of without costs, and connected miscellaneous petitions were closed.

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