Dear Experts,
Please guide if there is any limitation period for recovery of interest amount under section 79 as well. In our case the department proposes to recover the interest for FY 2017-18 u/s 79 of the act vide notice (DRC 01D) dt. 01.07.2025
We do not agree to the interest demand, as the amount was available in Electronic Cash Ledger and only the return was filed after the due date (with late fee); there are various legal precedents in our support and the law has been amended as well, however neither the department is accepting our submissions nor the department not issuing SCN DRC 01A or DRC 01 (despite specific request), and has issued present DRC 01D.
Please guide
DRC-01D under Rule 142B can recover GST interest when tax in Electronic Cash Ledger and return filed late A taxpayer challenged recovery of interest for FY 2017-18, contending the tax was available in the Electronic Cash Ledger and the return was filed late with fee; the revenue issued a DRC-01D dated 01.07.2025 instead of SCNs like DRC-01A/DRC-01. Respondents note DRC-01D under Rule 142B is a permissible recovery document and that interest on self-assessed liability accrues automatically; issuance of other specific SCNs is not required for recovery. Whether interest is payable depends on factual and legal nuances (ledger sufficiency, timing of payment, applicable amendments and precedents), so outcomes vary case by case. (AI Summary)
TaxTMI 
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TaxTMI 
