2019 (12) TMI 275

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....elayed payment of GST, dated 6.2.2019, issued by the respondent No.3, Superintendent of CGST & CX Range-I, Ranchi, as contained in Annexure-3 to the writ application, whereby the liability of amount of Rs. 11,58,643/- has been imposed upon the petitioner, as short paid interest for not depositing the tax within time. 3. By the said letter, the petitioner was asked to make the payment of the aforesaid amount in the Government account and submit the payment details within three days of the receipt of the letter. Admittedly, pursuant to the issuance of this demand, the bank account of the petitioner Company was freezed and upon the payment of the aforesaid amount, the account has now been defreezed. 4. Learned counsel or the petitioner s....

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.... Learned counsel for the CGST also referred to Section 50(1) of the CGST Act, which relates to Interest on delayed payment on tax, which reads as follows:- "50. Interest on delayed payment on tax. - (1) Every person who is liable to pay tax in accordance with the provisions of this Act or the rules made thereunder, but fails to pay the tax or any part thereof to the Government within the period prescribed, shall for the period for which the tax or any part thereof remains unpaid, pay, on his own, interest at such rate, not exceeding eighteen per cent., as may be notified by the Government on the recommendations of the Council." 7. In order to appreciate the contention of learned counsel for the CGST, Section 73(1) of the CGST Ac....

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.... tax not being paid, within the period prescribed, or when due. In that view of the matter, we are unable to accept the contention of learned counsel for CGST that no show-cause notice was required to be given in this case. Even otherwise, if any penal action is taken against the petitioner, irrespective of the fact whether there is provision under the Act or not, the minimum requirement is that the principles of natural justice must be followed. In the present case admittedly, prior to the issuance of letter dated 6.2.2019, no show-cause notice or an opportunity of being heard was given to the petitioner and no adjudication order was passed. 8. In the present case, admittedly amount of Rs. 11,58,643/-, i.e., the amount of short paid ....