2019 (8) TMI 857

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....S.Muthu Venkatraman JUDGMENT PER: DR.VINEET KOTHARI, J. The Revenue has filed these two intra court appeals aggrieved by the orders dated 13.6.2019 passed by the learned Single Judge of this court directing the Assessing Authority who is the present appellant before us to decide the objections of the Assessee dated 10.5.2019 and 29.3.2019 filed in pursuance of the Notice demanding interest issued under Section 50 of the CGST Act by the present Appellant on 2.5.2019 and 14.3.2019 to the Respondent/Assessee. 2. The interest demand on the alleged delay in filing returns under CGST Act was computed to the tune of Rs. 41,74,620/- and Rs. 1,70,71,048.31 respectively whereas the Assessee in his objections has raised certain issues abou....

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....e aforesaid balance of little over Rs. 33,00,000/-, the said bank shall pay out an admitted sum of Rs. 9,15,121/- (Rupees Nine Lakhs Fifteen Thousand One Hundred and Twenty One only) to the Assistant Commissioner of GST and Central Excise, Maraimalainagar Division (first respondent herein) forthwith. c) In all other aspects, communication dated 21.05.2019 bearing reference C.No.IV/16/30/2019-Tech-III from the first respondent to the aforesaid bank will stand set aside. This would mean that the writ petitioner can operate aforesaid bank account with the exception of aforementioned admitted sum of Rs. 9,15,121/-, which shall be paid by the Bank to the first respondent. d) On payment of aforesaid amount on or before 20.06.201....

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....e and re-computing the interest liability, has unnecessarily filed the present intra-court Appeals. The Assessing Authority was bound to decide the aforesaid objections of the Assessee, to determine the correct liability of interest to be paid by the Assessee and without doing so, the garnishee proceedings could not have been initiated. 5. Therefore, the learned Single Judge has rightly set aside the garnishee direction to the Bank, while directing the Bank to deposit the admitted liability for interest under Section 50 of the Act to the extent of Rs. 9,15,121/- (in W.A.No.2127/2019) and Rs. 22,39,413/- (in W.A.No.2151/2019) which the Assessee undertook to pay. 6. I do not find any merit in the present Writ Appeals filed by Revenue an....

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.... the Council." 3. The learned counsel for the Appellant submits that every person, who is liable to pay tax, but, fails to pay the tax or any part thereof, shall for the period for which the tax or any part thereof remains unpaid, pay, on his own, interest and not on his assessment. This, automatically imposes a liability upon the Assessee to pay interest. On the very admission of the Assessee that they had filed the Returns belatedly as they could not make the payment of GST on time, the liability to pay interest under Section 50(1) arises even without any Assessment as the Assessee is required to pay such interest on his own. 4. Section 50 speaks about the liability to pay interest on one contingency viz., to pay tax or any part the....