HC directed Revenue Department for early disposal of representation made by assessee on charging of interest for delayed payment

Last updated: 31 July 2021

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The Madras High Court has instructed the Revenue Department to promptly consider a representation made by M/s S.R. & Sons concerning the charging of interest for delayed Goods and Services Tax (GST) payments. The firm had argued that their grounds, both factual and legal, were not properly adjudicated regarding the interest levied under Section 50 of the CGST Act. The court has directed the department to pass a reasoned order within twelve weeks, while also asking the petitioner to cooperate fully.

Court :
Madras High Court

Brief :
In M/s. S. R. & Sons. v. Assistant Commissioner & Ors. [W.P. Nos. 15306 and 15307 of 2021 & WMP No. 16193 of 2021 dated July 26, 2021], M/s S.R. & Sons ('the Petitioner') is a partnership firm, involved in the activity of manufacture of knitted and crocheted fabrics.

Citation :
W.P. Nos. 15306 and 15307 of 2021 & WMP No. 16193 of 2021 dated July 26, 2021

In M/s. S. R. & Sons. v. Assistant Commissioner & Ors. [W.P. Nos. 15306 and 15307 of 2021 & WMP No. 16193 of 2021 dated July 26, 2021], M/s S.R. & Sons ('the Petitioner') is a partnership firm, involved in the activity of manufacture of knitted and crocheted fabrics.

The Petitioner contended that under Section 50 of the Central and Goods Services Tax Act, 2017 ('the CGST Act'), interest on delayed payment of tax shall be charged. However, the Petitioner has raised that the Assistant Commissioner ('the Respondent') failed to adjudicate the factual as well as legal grounds.

The Petitioner has grievances against order-in-original dated November 11, 2020 ('OIO'), regarding charging of interest under Section 50 of the CGST Act and to redress grievances, the Petitioner approached the Revenue Department by way of representation dated November 03, 2020 ('the Representation'). But the Revenue Department didn't consider the Representation with reference to Section 73(9) of the CGST Act and Rule 142(5) of the Central Goods and Services Tax Rules, 2017 ('the CGST Rules') and hence the Petitioner filed petition.

The Hon'ble Madras High Court directed the Respondent, to consider the Representation submitted by the Petitioner and pass an order on merits and in accordance with law and by affording an opportunity to the Petitioner, as expeditiously as possible, preferably within a period of twelve weeks. Further, directed the Petitioner to cooperate with the Respondent for the early disposal of the application by submitting all relevant documents and evidence or the rulings relied upon.

FAQ :

The main issue was the charging of interest on delayed payment of GST under Section 50 of the CGST Act, with the petitioner arguing that their representation on this matter had not been properly adjudicated by the Revenue Department.

The Madras High Court made the direction regarding the representation.

The High Court directed the Revenue Department to consider the representation made by M/s S.R. & Sons and pass an order on merits and in accordance with law, as expeditiously as possible.

The court has preferably directed the disposal of the representation within a period of twelve weeks.

M/s S.R. & Sons is expected to cooperate with the Revenue Department for the early disposal of their application by submitting all relevant documents, evidence, or rulings they rely upon.