Tax Interest Dispute Resolved: Petitioner Directed to Pay Interest on 700-Day Delay, Fresh Order to Be Issued HC ruled on tax interest dispute for assessment period 2017-2018. Petitioner challenged interest calculation, claiming shorter delay period. Court set ...
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Tax Interest Dispute Resolved: Petitioner Directed to Pay Interest on 700-Day Delay, Fresh Order to Be Issued
HC ruled on tax interest dispute for assessment period 2017-2018. Petitioner challenged interest calculation, claiming shorter delay period. Court set aside original order, directing petitioner to pay interest based on 700-day delay. Respondent ordered to issue fresh order within 3 months after interest payment, with opportunity for petitioner to respond to show cause notice. Writ petition disposed without costs.
Issues: Challenge to imposition of interest in an order related to assessment period 2017-2018.
Analysis: The petitioner contested the imposition of interest in an order dated 31.12.2023 concerning the assessment period 2017-2018. The petitioner argued that there was a mismatch between their GSTR 3B return and GSTR 1 statement, but the tax liability had been discharged. The petitioner claimed that interest was calculated based on a delay of 2080 days, while they asserted the delay was only 700 days, requesting reconsideration.
Analysis: The respondent, represented by Mr. C. Harsha Raj, AGP (T), contended that natural justice principles were followed through intimation, show cause notice, and a personal hearing. It was emphasized that there was no discretion regarding interest liability.
Analysis: The impugned order acknowledged the belated payment of taxes by the petitioner, leaving the interest aspect for consideration. The petitioner's argument of a 700-day delay instead of 2080 days was deemed significant. Consequently, the court set aside the order in terms of interest liability, requiring the petitioner to discharge the interest within 15 days based on the 700-day delay. The petitioner was granted the opportunity to respond to the show cause notice on interest liability, with the respondent directed to issue a fresh order within three months upon satisfaction of the interest payment.
Analysis: The writ petition was disposed of without costs, with connected miscellaneous petitions closed as per the above terms.
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