TaxTMI 
TaxTMI 
2025 (10) TMI 1248
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....lowing prayers: a. A writ of certiorari, or any other appropriate writ, order and/or directions in the nature of certiorari to quash the notice dated 27.03.2023 and all the subsequent notices issued by the respondent no. 3 determining the demand of Rs. 28,16,834/- on account of short payment of interest on delayed payment of tax u/s 50 of the CGST Act r.w.s. GGST Act by invoking provisions u/s 75(12) of CGST Act r.w.s. GGST Act and without initiating assessment proceedings. (Annexure A); b. A writ of mandamus, or any other appropriate writ, order and/or directions in the nature of mandamus to quash the notice dated 20.05.2024 issued in Form GST DRC-13 u/s 79(1)(c) to hold lien the amount of Rs. 23,17,702/- in bank account no. 50200005197811 maintained with HDFC Bank, account no. 18330200000287 maintained with Bank of Baroda and account no. 111010200016773 maintained with Axis Bank and directing the Respondent to release the bank accounts. (Annexure B). c. A writ of Mandamus or writ, order, or direction in the nature of Mandamus directing the respondent to refund the amount of interest of Rs. 7,50,000/- which was paid under pressure. d. A writ of ....
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.... pay self-assessment tax, then he will be liable to pay interest at the rate of 18% per annum or as may be recommended by the GST Council. It was submitted that without giving an opportunity of hearing and without considering the submissions of the petitioner, no recovery proceedings could have been contemplated by the respondent-Authority being the impugned advisory. 6.1 It was also pointed out that there is no provision for issuance of the advisory under Section 50(1) of the GST Act and thereto, referring to the provisions of Section 79 of the GST Act to initiate the recovery proceedings. 6.2 It was submitted that on perusal of the advisory, it appears that it only refers to the provisions of Sections 50 and 75(12) of the GST Act read with Rule 88B of the Central/State Goods and Services Tax Rules (for short 'the GST Rules') which provides for manner of calculating interest on delayed payment of tax. 7. On the other hand, learned Assistant Government Pleader Mr. Utkarsh Sharma for the respondent submitted that the issuance of the advisory for ensuring payment of interest under Section 50(1) of the GST Act is only to intimate the petitioner with regard to the outstanding ....
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....covery of interest only for which proper Officer has to take action against the tax payer as per Section 75(12) of the Act. In view of the provision of Section 75(12) of the Act read with Section 79 of the Act, the proceedings were initiated by the department without issuing show-cause notice under Sections 73 and 74 of the Act. The proceedings were initiated for the recovery of interest which were not paid by the tax payers even after issuance of multiple letters dated 24.3.2023, 24.4.2023, 22.5.2023 and 31.5.2023. The Office had clearly mentioned that further proceedings as per Section 75/79 of the Act shall be carried out by the department. Therefore, issuance of show-cause notice is not necessitated at the instance of the department. The department has given sufficient opportunities to the tax payers to file its reply before the department and has followed the criteria of principles of natural justice. Therefore, in view of the above provisions, the department has rightly invoked the provisions of Section 75(12) of the Act read with Section 79 of the Act and, therefore, the petition is misconceived. 9. In case of Reliance Formulation Private Ltd. v. Assistant Commissioner of....
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....o pay the interest on his own at the rate of 18% per annum as may be recommended by the GST Council. 13. The manner in which the interest is to be computed is provided under Rule 88B of the GST Rules for delayed payment of tax, whereas, Section 75(12) of the GST Act provides that notwithstanding anything contained in Sections 73 or 74 of the GST Act, where any amount of self-assessed tax or interest payable on such tax remains unpaid, then the same shall be recovered under the provisions of Section 79 of the GST Act. At the same time, Rule 88C of the GST Rules provides the manner of dealing with difference in liability reported in statement of outward supplies and that reported in return, whereas, Rule 142B of the GST Rules which is inserted by the Central Goods and Services Tax (with an Amendment) Rules, 2023 with effect from 04.08.2023 provides for intimation of certain amounts liable to be recovered under Section 79 of the GST Act which includes the tax or interest which 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....
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....to recover the outstanding dues which may include the outstanding interest as per the provisions of Section 79 of the GST Act which provides for recovery of the dues as per the modes prescribed therein. Therefore, the reference to Section 79 of the GST Act in the impugned advisory is only to put the petitioner on guard as to such outstanding liability as per the record of the respondent-Authority so that the petitioner can either make the payment of such liability if agreed or may oppose the same when the notice in Form GST DRC-01D is received by the petitioner for recovery of such amount as stated hereinabove. Therefore the anxiety of the petitioner that the respondent-Authority will directly apply the mode of recovery prescribed under Section 79(1) of the GST Act, is without any basis in view of the insertion of Rule 142B in the GST Rules with effect from 04.08.2023 which requires intimation/notice of recovery to the petitioner so as to enable the petitioner to reply the same. 16. We also clarify that after issuance of the notice in Form GST DRC-01D, as per the provisions of Section 75(4) of the GST Act, the respondent-Authority is bound to provide an opportunity to file reply....