High Court of Madras
Tvl. Noyyal Common Effluent Treatment Company Ltd. v. Assistant Commissioner (ST)
W.P. NO. 26246 OF 2024
The ruling in brief
Where petitioner initially discharged GST at a lower rate and later paid differential tax after departmental intimation regarding higher tax rate, liability to pay interest for belated tax payment arose under determination and recovery framework, and obligation to pay interest subsisted irrespective of subsequent payment or willingness to pay in instalments, rendering recovery of such interest under determination and recovery provisions fully justified.
Where petitioner initially discharged GST at a lower rate and later paid differential tax after departmental intimation regarding higher tax rate, interest on delayed payment remained payable under determination provisions and reference to extended period in DRC-01 and DRC-07 would not invalidate proceedings; matter required reconsideration of petitioner’s reply in light of business nature for a fresh order
Provisions considered
Section 50, read with sections 75 and 79, of Central Goods and Services Tax Act, 2017/Tamil Nadu Goods and Services Tax Act, 2017; Section 74 of Central Goods and Services Tax Act, 2017/Tamil Nadu Goods and Services Tax Act, 2017 - Rule 142 of Central Goods and Services Tax Rules, 2017/Tamil Nadu Goods and Services Tax Rules, 2017
This summary is for general information and is not legal advice. Read the full decision and the applicable law before relying on it.