TaxTMI 
TaxTMI 
TaxTMI 
2025 (7) TMI 1066
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.... as a consequence thereof be pleased to quash and set-aside the advisory dated 18.12.2024 is issued by the Respondent to the Petitioner which is annexed at ANNEXURE A to the petition; B. Pending the admission, hearing and final disposal of the petition, be pleased to stay the operation, implementation and execution of the impugned advisory dated 18.12.2024 issued by the Respondent as is annexed at ANNEXURE A to the petition." 4. The brief facts of the case are as under: 4.1. The petitioner is a private limited company specialised in formulation of psychotropic range of Ayurvedic and herbal products as well as variety of antibiotics, enzymes and vitamins. The petitioner is registered under the provisions of the Central/State Goods and Services Tax Act, 2017 (for short 'the GST Act') and is regularly filing its return of income from 01.07.2017 as per the provisions of Section 39 of the GST Act. 4.2. It is the case of the petitioner that the petitioner received an advisory dated 18.12.2024 for financial years 2017-18, 2018-19, 2021-22, 2022-23 and 2023-24 for ensuring payment of interest under Section 50(1) of the GST Act in respect of self-assessed tax paid after the due date of....
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....terest on delayed payment. 6.2. It was submitted that as per Section 75(12) of the GST Act, where any amount of self-assessed tax in accordance with the return furnished under Section 39 of the GST Act remains unpaid either wholly or partly or any amount of interest payable on such tax remains unpaid notwithstanding anything contained in Sections 73 and 74 of the GST Act, the same is to be recovered under the provisions of Section 79 of the GST Act. 6.3. It was further submitted that the newly inserted Rule 142B of the GST Rules with effect from 04.08.2023 provides to issue the intimation for certain amounts liable to be recovered under Section 79 of the GST Act and therefore, without issuance of intimation in Form GST DRC-01D, as referred to in the said Rule, no recovery as contemplated in Section 79(1) of the GST Act can be made by the respondent-Authorities and therefore, merely issuance of advisory by the respondent-Authority after 04.08.2023 would not result into taking any action of recovery as per the mode prescribed in Section 79(1) of the GST Act without issuing the intimation as per Rule 142B of the GST Rules. 6.4. It was submitted that as per Sub-rule (2) of Rule 142B....
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....ection (1), other than the person referred to in the proviso thereto, or sub-section (3) or sub-section (5), shall pay to the Government the tax due as per such return not later than the last date on which he is required to furnish such return: Provided that every registered person furnishing return under the proviso to sub-section (1) shall pay to the Government, in such form and manner, and within such time, as may be prescribed,- (a) an amount equal to the tax due taking into account inward and outward supplies of goods or services or both, input tax credit availed, tax payable and such other particulars during a month; or (b) in lieu of the amount referred to in clause (a), an amount determined in such manner and subject to such conditions and restrictions as may be prescribed. Provided further that every registered person furnishing return under sub-section (2) shall pay to the Government, the tax due taking into account turnover in the State or Union territory, inward supplies of goods or services or both, tax payable, and such other particulars during a quarter, in such form and manner, and within such time, as may be prescribed. Section 50: Interest on delayed pay....
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....ny proceedings under section 73 or section 74 [or section 74A] in respect of the said period, the interest on tax payable in respect of such supplies shall be calculated on the portion of tax which is paid by debiting the electronic cash ledger, for the period of delay in filing the said return beyond the due date, at such rate as may be notified under sub-section (1) of section 50. (2) In all other cases, where interest is payable in accordance with sub section (1) of section 50, the interest shall be calculated on the amount of tax which remains unpaid, for the period starting from the date on which such tax was due to be paid till the date such tax is paid, at such rate as may be notified under sub-section (1) of section 50. (3) In case, where interest is payable on the amount of input tax credit wrongly availed and utilised in accordance with sub-section (3) of section 50, the interest shall be calculated on the amount of input tax credit wrongly availed and utilised, for the period starting from the date of utilisation of such wrongly availed input tax credit till the date of reversal of such credit or payment of tax in respect of such amount, at such rate as may be notifi....
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.... under section 50, through FORM GST DRC-03 and furnish the details thereof in Part B of FORM GST DRC-01B electronically on the common portal; or (b) furnish a reply electronically on the common portal, incorporating reasons in respect of that part of the differential tax liability that has remained unpaid, if any, in Part B of FORM GST DRC-01B, within the period specified in the said sub-rule. (3) Where any amount specified in the intimation referred to in sub-rule (1) remains unpaid within the period specified in that sub-rule and where no explanation or reason is furnished by the registered person in default or where the explanation or reason furnished by such person is not found to be acceptable by the proper officer, the said amount shall be recoverable in accordance with the provisions of section 79. Rule 142B: Intimation of certain amounts liable to be recovered under section 79 of the Act: (1) Where, in accordance with section 75 read with rule 88C, or otherwise, any amount of tax or interest has become recoverable under section 79 and the same has remained unpaid, the proper officer shall intimate, electronically on the common portal, the details of the said amount ....
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....h has become recoverable in accordance with Section 75 of the GST Act read with Rule 88C of the GST Rules or otherwise. Therefore, on conjoint reading of the Scheme of the GST Act and the Rules, it appears that the respondent-Authority can recover the amount of interest which has become due as per the provisions of Section 50(1) of the GST Act read with Rules 88B and 88C of the GST Rules under Section 79(1) of the GST Act only after issuance of intimation in Form GST DRC-01D which will be treated as notice for the recovery as provided under Rule 142B of the GST Rules and without following such procedure, the respondent-Authority cannot make any effective recovery of interest which may become payable by the assessee under the provisions of the GST Act and Rules on self-assessment to be made by such assessee. 10. In such circumstances, it would be germane to refer to the Form GST DRC-01D as prescribed under Rule 142B of the GST Rules, which is reproduces hereunder: "FORM GST DRC-01D [See rule 142B] Intimation for amount recoverable under section 79 Reference No.- Date- 1. Details of intimation: (a) Financial year: (b) Tax period: Form.......To...... 2. Section(s) of ....