Allowed

M/s Pavan Motors Pvt. Ltd. v. Union of India

Telangana HC24 Nov 2022WP/18703/2019

Case brief

AI extract

What is this about?

The High Court allowed multiple writ petitions challenging interest demands and recovery proceedings under the CGST Act. The Court held that the issues were no longer res integra following a Division Bench decision (W.P. No.44517 of 2018) and ordered respondents to follow the directions in that order. No costs.

What did the court decide?

Allowed the writ petitions without costs. Respondents directed to follow the directions contained in the order passed in W.P. No.44517 of 2018 & batch dated 22.12.2021.

M/s Pavan Motors Pvt. Ltd. Vs Union of India — GST and Indirect Tax | Telangana HC (2022)

¶1

[³³¹⁹ I

¶2

HIGH CO{.JRT^{FORTHE STATE OF TELANGANA} AT HYDERABAD (Special Original Jurisdiction)

¶3

THURSDAY, THE TWENTY^{FOURTHDAYOF NOVEMBER} TWO THOUSAND AND^{TWENTY TWO}

¶4

PRESENT

¶5

THE HONOURABLE^{SRIJUSTICE T.VINOD KUMAR} AND

¶6

THE HONOURABLE^SRI JUSTICE^{PULLA KARTHIK}

¶7

WRIT PETITION NOS:18703 19213 19547 19554 22233²²⁴⁷³ AND 25237 0F 20',19

¶8

w .P.No.l8703 of2019

¶9

Between:

¶10

Mis Pavan Motors^{Pvt Ltd.(A Company regrstered under-companiesAct} _'1956^wi.th clN'U50200TG2u1PrCo72470)RepresentedbyitsManaglng-D.lrector^SnK Cfrandra Pavan Reddy,^{Andhavingits Registered Officeat 5-4-183/184,Ground} Floor, Modi Square.^{Ranigunl. Secunderabad} -²⁴

¶11

...PETITIONER

¶12

AND

¶13

Union of lndia, Represented^{by Revenue Secretary' North Block, New Delhi'}

¶14

The Chairman, Central^{Boardof lndirect TaxesandCustoms, Representedby} its Chairman. North Block,^{New Delhi.}

¶15

The Commissioner of^{Centr.il Tax. Ranga Reddy GST Commissionerate,}

¶16

Posnett Bhavan, Tilak Road. Ramkoti, Hyderabad, Telangana 500001

¶17

The Deputy Commissioner^{of Central Tax, Nalgonda GST Division,D No 6-2-} 20, Opp B6at Market,^{Hyderabad Road. Nalgonda - 508 001'}

¶18

The Superintendent,^{Nalgonda GST Division, D.No.6-2-20,Opp Beat Market'} Hyderabad Road, Nalgonda^{- 508001.}

¶19

The Branch Manager,^{State Bankof lndia} 4llep9lhy^{Village'Hyderabad} lvlain Road, Survey No.a2,^{NalgondaDist - 508 001.}

...RESPONDENTS

Contd....2

Petition under^{Arlicle 226 of the constitutionof lndia praying that in the} circumstances^{stated in the affidavitfiledtherewith,the High Court may be-} oleasedtoissueanywrit,orderordirection,moreparticularlyoneinthenatureof [v;;'-M;;;;;r'. setting aside the^{interest demand to the tuneof} at),Zl,aa,$z/.^{made vide RespondentNo 5 s- e-T9ll dt 30 07 2019 read with} ca-tciiation sheet^{providedwith emaildt.06-08-2019and the consequential} iu.ou"ry^{proceedingsinitratedvide Respondent No.4s letter to RespondentNo.6.} in fOAf,l CSf-DRt,13^{dt 14,08.2019, as being illegal, arbitrary, against} i.ui.ion.^{ot Centrat Goodsand ServicesTax Aci, 20'19, against principles of} Iaiurat lrsti"e and^{against Articles14 and 19(1)(g)of Constitution of lndia'}

¶24

l.A.NO:1 OF 2019

¶25

Petition under Section^{151CPC prayingthat in the circumstances statedin} the affidavit^{filed in support of the petition'the HighCourt may be pleased to pass.} an oroer or orders,^{or directionor directions, suspendingthe operation} ,of n".ponJ"nt No.5 s^{emaild1.30.07.20'19 read with calculation sheet provided with} email dt.06-08-2019^{and all the consequential recoveryproceedings-including} ReiponOent No.4 s^{letter toRespondentNo 6 inFORM-GST-DRC-13} dt 14.08 2019,^{pending disposal of this writ petition}

¶26

t.A.NO:2 OF 2019

¶27

PetitionunderSectionl5lCPCprayingthatinthecircumstancesStatedin the affidavit^{filed in support of the petition,the High Court may be pleased to pass} an order or orders,^{oi direction or directions,directingRespondentNo 6 not to} withhold, attach or^{pay any monies from the Petitioners accountsrn complrance oI} iOArr/l_CSf^{_OnC_13 4t.14.08.2019,pending disposat of this writ petition.}

¶28

Counsel for the^{Petitioner: SRI.G.VIDHYADHAR REDDY}

¶29

Counsel for the Respondents^{:SRI.A.RAMA KRISHNA REDDY(SC FOR CBEC)}

¶30

W.P.NO:192'13 oF^20'19

¶31

Between:

¶32

M/s. Vallabhaneni^{Constructions Pvt. Ltd,' No.1-8-62/8/1,Church Compound Near} 5"i',trdi[o"L srrvipet,^{Nargonda DistrictTelangana-508213 Rep by its Manag'ng} Director. Sri Vallabhaneni^{Venkate3waraRao.}

¶33

...PETITIONER

¶34

AND

¶35

l.TheUnionoflndia,RepresentedbyitsSecretary,Dept.ofRevenueMinistry of Finance. North^{Block New Delhi.}

¶36

Contd....3

¶37

¶38

The Deputy^{Commtssroner Central Tax'Nalgonda 9ST Division' D No.6-2-20}

¶39

' op;"8;:iifialt<et uvoeraoad road, Nalgonda-508001

¶40

3 The Superintendent^{ot Central goods and services TaxSurvapetRanqe} " n' r,r""ilz:ziblaiEj/Br]i-"';i' rio"s K".hri Nagar colony^{suryapet-So821 3}

¶41

Commissioner^{of Central Tax Ranga} F"9dt^GfI^Pommissionerate^Posnett Bhavan, Tilak^{Road, Ramkoti Hyderaoao- suuuu r'}

¶42

The Chairman,^{CentralBoardof lndirect TaxesandCustoms North Block'} New Delhi.

¶43

The Branch^{Manager Syndicate Bank' Labbipet' Vijayawada' Andhra Pradesh} -s20010.

¶44

...RESPONDENTS

¶45

Petition Under^{Article 226 of lhe Constitution of lndia praying that in the} circumstances^{statedin t'"-'tfiJ'"itfiled therewiththe High Courtmay be} oteased to^{issue a writ. ordJroi On".tionmore particularlyone in tl9 I3t'1". ol} Vr;; ;iN;;;ffi;l^{Ju"itiins- f'; t"tt"' c ruo vroartorzotg-ost ARC/454' dated} 21.08.2019^{issuedby ZnO h"tp'nOtnt directingthe 6th Respondentto attach} ;il;; in" u*or"l^{or as7gi'zo7las illegal'arbitraryand against lhe} diiect the 6th^{Respondentnot to} orovisions of^{the CGSTncilnO'} "ons"quently I"L"i" tn" amounts^{held in the account of the Petitioner}

¶46

l.A.NO:1 O^{F 2019}

¶47

Petition Under^{Section151 CPC prayingthat in the circumstancesstated} in the affidavit^{filedin supportot tn" p"iitlon t!"} lgl^{Court maybe pleasedto} stay the effect^{and operatroi tiieii"t'C rlo vlo4t16i2o1s- GST ARC/454' dated} ?1 08.2019, tssued^{by zno responOenipenoingdisposal of the writ petition and} to^{pending disposal of the abovewrit petition}

¶48

Counsel for^{the Petitioner: SRI'CHOWDHARY SARADHI}

¶49

Counsel for^{the Respondents: SRI'A'RAMA KRISHNA REDDY (SC FOR CBEC)}

¶50

w.P.NO.195 47^{0F 2019}

¶51

Between:

¶52

LOT Mobiles^{Pvt Ltd'D.No1-98/8/5/A' Plot No 3lmage Garden} Lane Road, irr-ron.'ii,i"irvo"iiuio.' iffi;hftid;, Eo^{rraempiraii n"p uv its ch''t*'n Narsimnuta and Naidu Managing aged Director-about} Memparala50^years, R/o. Hyderabad.

..PETITIONER

Contd. ...4

-4

AND

Union of^{lndia, Through Joint Secretary,} -D^epartment^{of Revenue' Ministry of} Finin." at North^{Bloc-k New Delhi- 1 10001 '}

¶58

2.TheCentralBoardoflndirectTaxesandCustomsatNorthBlock'NewDelhi1 1 0001

¶59

The Commissioner,^{Central Tax, Rangareddy Commissionerate' Ground}

¶60

ii;AF;;a;ettBhavan, Boggulakunta, Abids, Hvderabad

¶61

The Superintendent^{Central Tax, O/o The SuperintendentOf Central Tax'}

¶62

¶63

- i/i;;;;i;;cEr nrnsu, RJnsJr"oovcommisiiolerate' 10-3-301 to 303' 4th Fioor, SJr"r"^{neighlsl'Hr;iyun rligar' Masab Tank Hyderabad' Hyderabad}

¶64

...RESPONDENTS

¶65

Petition Under^{Article226 of lhe constitution of lndia praying that in the} circumstances^{stated in the affidavit filed therewith'the HighCourt may be-} nteased to issue a wrrt.^{orJer or direction more particularly one in the natureof} ;il;;;;;;. Ju.raing the^{proceedings initiatedby the Respondl1-"91} ialed 25O7^{2019, instrtutin!proceedings in terms of Section79 of CGST Act} )ol-i, io, ,""ou"iy^{ot arreie'onon-paiment of interest accrued'in terms of} S".tibn 50(1)^of CbSf^{nCiZOlTas'illegal,arbitraryand without the sanctionof} ccsr n"t )rin^{ana viotative of Article20 and21 0f the constitution of lndia}

¶66

.A.NO:1 OF²⁰¹⁹

¶67

PetitionunderSectionl5lCPcprayingthatinthecircumstancesstatedin the affidavit^{filed in sr-rpport of the peiition,ine Hign Courtmay be pleasedto} oiOei stay of the^{actroninitiated by ine Respondents} .herein^{vide the impugned} Ltier issreo^{by the RespondentNo.4 to the petitioner herein. dated 25 7 .2019.}

¶68

Counsel for^{the Petitioner: SRI.SRINIVAS CHATURVEDULA}

¶69

Counsel for the^{Respondents: SRI.A.RAMA KRISHNA REDDY (SC FOR CBEC)}

¶70

W.P.NO: 19554^{0F 2019}

¶71

Between:

¶72

BIG C Mobiles^{Pvt Ltd. BIG C Tower, D'No 1-99/2/b'5th Cross RoadVittal Rao} Nagar, MadhaPur^HYderabad

...PETITIONER

Contd.^.. -5

AND

'1. Union of lndia, Through Joint Secretary,^{gepartmentof Revenue' Ministry of} Finance, At North^{Bloak. New Delhi- 1 10001}

¶78

2.TheCentralBoardoflndirectTaxesandCustomsatNorthBlock,NewDelh|1 10001

¶79

The Commissioner,^{Central Tax, Rangareddy Commissionerate' Ground} ' fioor. Possnett Bhavan, Boggulakunta, Abids, Hyderabad'

¶80

4.TheSuperintendentCentralTax,o/oTheSuperintendentofCentralTax, .

¶81

' konO"fjut GSf nange, Cangaieddy Commissionerate l0-3-301 to.3q3 4!h iri,oilS"*n"^{ueighii'HumitunN'agar' Masab Tank HyderabadHvderabad} - 28.

¶82

..,RESPONDENTS

¶83

Petition under Article^{226 of the constitutionof lndia praying that in the} circumstances^{statedin the affidavit fitedtherewith,the High Courtmay be-} piari"J to issue a writ, order^{or direction more particularlyone in the nature of} ilrit of mandamus,^{declaring the proceedings initiated by the Responde.nl} 19⁴ ". ifl"g"r, ,inltr"ty^{and without the sanctionof CGST Act 2017 and violattveot} Article 20 and^{21 of the Constitution of lndia'}

¶84

t.A. NO:1 OF 2019

¶85

PetitionunderSectionlslCPcprayingthatinthecircumstancesstatedin the affidavit^{filedin supportof the peiition,ine nign Courtmay be pleasedto} issue interim .-o"r.iu" steps,^{directions like action to the in terms Respondents, refraining of Section 79 of CGST ACT them from tgltllS 2017' and} "nY ;;;.;q;";iii^{siay all furtherproceedings in this regard'pending disposalof the} writ^{petition, in the interestof} iustice

¶86

Counsel for the Petitioner^{: SRI.SRINIVAS CHATURVEDULA}

¶87

Counsel for the^{Respondents: SRI.A.RAMAKRTSHNAREDDY (SC FORCBEC)}

¶88

W.P.NO:222 33 0F²⁰¹⁹

¶89

Between:

¶90

M/s. M.R.Marketing,^{Rep. by its Sole Proprietor' Venkateshwarulu Mahankali'} i, rrr"zoi waro No 1,^{'Blo;i N;2. BechralnagaramSury^a-pet-508213No 1-8-} o'iA)i Cirrin^{compouno,Nalgonda Diskict, Telahgana- 508213}

...PETITIONER

Contd....6

-6

AND

The Union of lndia,^{Represented by its Secretary, Dept. of Revenue Ministry} of Finance, North^{Block New Delhi.}

¶96

The Deputy Commissioner,^{Central Tax, Nalgonda} 9ST^{Division,D No 6-2-20} Opp. B6atiMarket,^{Hyderabad road, Nalgonda-508001}

¶97

The Superintendent^{of Central goodsandservices Tax'SuryapetR'ngg-} ^ . ^ - n r.to ilz-zzot87t33lB1 . Road tio 3, Krishna Nagar Colony. Suryapet-so8213'

¶98

Commissioner of central^{Tax, Ranga Reddy GST Commissionerate Posnett} Bhavan, Tilak Road,^{Ramkoti Hyderabad - 500 001.}

¶99

The Chairman. Central^{Board of lndirect TaxesandCustoms North Block'} New Delhi

¶100

The Branch Manager,^{State Bank of lndia (FormedyState Bank of}

¶101

Hyderabad), Agric"ultural Division Branch, Dr.No.2-5-88/F, Krishna Talkies Road, Suryapet-5082^{1 3}

¶102

...RESPONDENTS

¶103

petition Under Article 226 ol lhe constitution of lndia^praying that^{in the} circumstances statecl^{rn the affidavit filed therewith, the High court may be} pleased to direct to the Respondents^{under a writ,order or direction and more} particularly one in the nature of writ of^{mandamusor any other writ to declare_the} ietter C.No. Vt14t16t2O11'GST^{ARC/455,dated 2110812019,issued by 2nd} respondent directing^{the attachmentof the bank account maintained by the 6th} respondent bank tJ^{pay the amount of Rs.65,50,410/- (Rupees sixty five lakhs} fifty thousand four^{hundredand ten only) as illegal, arbitrary and againstthe-} provisions of the GGST Act and contrary^{to the Article14 of the constitutionof} india and also the^{same is in violation of principles of natural justiceand} consequen^y dtrect^{the 6th respondentnot to carry out the directionsto attach} and pay a sum of Rs^{65 50.4101 from the accountof the petitioner'}

¶104

l.A.NO:1 OF 2019

¶105

Petition under Section^{151 CPC prayingthat in the circumstances statedin} the affidavit frled in support^{of the petition, the High courtmay be pleased to stay} the effect and^operatron of^{the impugnedorderbearingletterC' No'} vlo4t16t2o1g- GST^{ARC/455.dated 21.08.2019, issued by 2ndrespondentand} all its consequenttal^{proceedings arisingthere from pending disposal of the writ} petition and to pencling drsposal of the above^{writ petition.}

¶106

Counsel lor the Petitioner^{: SRI.CHOWDHARY SARADHI}

¶107

Counsel for the Respondents^{: SRI.A.RAMA KRISHNA REDDY(Sc FOR cBEc)}

¶108

Contd...7

¶109

-7-

¶110

W.P.NO: 22473^{OF 2019}

¶111

Between

¶112

M/s.The Nagarjuna^{District co-operative l\ilarketing societyLimited.Nalgonda} rn -Co-ooeraiird Society reqistereb under Telangana Co-Terative_ Societtes Act i saa witn Reqiskatiod No.362/TH)^{Represented by v shyam} .^{Kumar' s-enror} lnspector^{(Field'). And havingits negisteredofflce at 5-1-341ts. lulasrnagarKoao'} Baharpet Nalgonda^{- 508 001.}

¶113

...PETITIONER

¶114

AND

¶115

1 The Commissroner of^{Central Tax, Ranga Reddy GST Commissionerate'} poineit Ah"*n, Tilak Road, Ramkoti, Hyderabad, Telangana⁵⁰⁰⁰⁰¹

¶116

2 The Deoutv Commissioner of Central^{TaxNalgonda GST DivrsronD No 6-2-} ZO Opp^g6at Market,^{HyderabadRoadNalgonda - 508 001'}

¶117

3 The Supenntendent,^{Nalgonda GST Division,D.No6-2-20,OppBeat Market'} Hyderabad Road, Nalgonda^{- 508 001}

¶118

4 The Branch Manager, lDBl^{Ltd.,5-2-32and 33, R P Road,OppM R O} Office, Nalgonda^{508 001.}

¶119

...RESPONOENTS

¶120

Petition under Article^{226 of the constitutionof lndia praying that in the} circumstances stated^{in the affidavit filed therewith,the Highcourt may be} pleased to issue any writ, order^{or direction, more partlcularlyone in the nature} ofWritofMandamus,settingasidetheinterestdemandedfortheperiodJuly )on rc May 2019^{to the tu-neof Rs.16,72,928! videRespondent No.3email} dt'20.os20lgandtheconsequentialrecoveryproceedingsinitiated-vide RespondentNo25lettertoRespondentNo.4.inFoRrvl-GST-DRC.13dt,27.08. ZOt S as being^{illegal, arbitraiy, against provisions of Central Goodsand} Services lax Ait,^{2019, against principlesof natural justice and against Articles} 14 and 19(1Xg) of^{Constitution of lndia.}

¶121

t.A. NO:1 OF 2019

¶122

PetitionunderSectionl5lcPcprayingthatinthecircumstancesstatedin the affidavit filed^{in supportof the peiition,the High Courtmay be pleasedto} prt. rn order or orders, or^{direction or directions,suspending the operation of} hespondent No3's^{emaildt.20.08.2019and all the consequentialrec919r.y} pro-JeeOings including Respondent^{No.2's letter to RespondentNo 4 in FORM-} bsr-onclt s dt^{21-ob-2019, pending disposalof this writ petition}

Contd...8

l.A.NO:2 OF 2019

Petition under section^{151 CPC praying that in the circumstances statedin} theaffidavitfiledinsupportofthepetition'theHighCourtmaybepleasedto prr" un order or orders.or^{direction or directions,directing RespondentNo.4not} io withhold,^{attach or pay any monies from the Petitionersaccounts in} of FoRtr/_GST-onC-j:^{dt.27 - o1-2oig, pending disposal of this writ} "trpti"n"" petition,

¶127

Counsel for the Petitioner^{: SRI.G.VIDHYADHAR REDDY}

¶128

CounselfortheRespondents:SRI.A.RAMAKRISHNAREDDY(scFoRcBEc)

¶129

w.P. NO: 25237 OF²⁰¹⁹

¶130

Between:

¶131

Smt. Burugu Raleswari,^{W/o B Satyanaayana. aged 49 yeaIg'.?rgpjlelrlxofM/s} ni1".*iti Ag"niies^{6-1-32 Vrdyanalar' Nalgonda, Nalgonda District- 508001'}

¶132

...PETITIONER

¶133

AND

¶134

1 DeDUtv Commrssioner, O/o^{The Deputy Commissioner CentralTax,} Niig"ioi osr D^{No 6-2-20.opp-Eiea[ market, Hyderabad Road, Nalgonda-} 508001

¶135

The State Banr^{of lndia.Rep.by its Branch Manager, 5-7-1, Prakasham} Bazar Shopprng Complex.^{Nalgonda - 508001.}

¶136

-..RESPONDENTS

¶137

Petition Under Article^{226 of the constitution of lndia praying that in the} circumstances stated^{in the affidavit filed therewith, the High court maybe} pleased to issued \ryrit of t\Iandamus^{or any other appropriate writ or orderof} direction declaring the^{action of the 1st respondent in not following section 76 of} the Act, before^{taking coercrve steps for recoveryof the demand of Rs,6,38'114} from the 2nd^{respondent (PetitionersBank)by issuing Garnishee Notice,} dt.27.0g.2019,^{wlthout rssuing any notice or order or whatsoever to the petitioner} determining^the tax^{liability. as arbitrary, contrary to the provisionsof the-} S6ST/CGST Acts²⁰¹ 7^{contraryto Article 1a, 19(1)(g) of the Constitutionof} lndia and also the^{same is in violataon of principles of naturaljustice,} consequently set-aside^{the Garnishee Notice as nulland void, and direct the 1st} respondent io^{revoke the GarnisheeNotice dt 27.0820 19 forthwith'}

Contd...9

-9-

l.A.NO:1 OF 2019

Petition under Section^{151 CPC prayingthat in the circumstances statedin} the affidavit filed in^{supportof the petition, the High Court may be pleasedto} suspend the operation of Garnishee^{Notice, dt.27.08.2019issued by the 1st} respondent to the 2nd^{respondent, pending disposalof the above writ petition, as} otherwise, the^{petitionerwill} be^{put to severe loss and hardship.}

¶142

Counsel for the Petitioner : SRI.A.V.RAGHU^RAM

¶143

Counsel for the Respondents^{: SRI.A.RAMA KRISHNA REDDY (SC FOR CBEC)}

¶144

The Court made the following^{COMMON ORDER}

¶145

TIIE HON'BLE SRI JUSTICE^{T. VINOD KUMAR} AND THE HON'BLE SRI JUSTICE^PULLAKARTHIK

¶146

WRIT PETITION Nos .18703.¹⁹²¹³ .^{L9547. 19s54,22233.} 22473 AND 25237 0F 2019

¶147

COMMON ORDER:^{(Per Hon'ble Sri Justice T. VinodKumar)}

¶148

The issue in these batch of^{Writ Petitions relate to} interpretation of^provisions of^{Section50 of the Central Goods} and Services Tax Act,^{2017 (short'the CGST ActJ.}

¶149

When these matters arc listed^{before this Courttoday,the} learned Counsel appearing for^{the parties submitsthat the} issue in these Writ Petitions^{is no longer res integra in the light} of the decision of the^{Division Benchof this Court in W.P.} No.44517 of 2Oi8 & batch^{dated22.l2.2O2l.}

¶150

Sri A. Rama Krishna^{Rcddy, learned Special Standing} Counsel appearing lor^{the respondents do not dispute the above} said submission.

¶151

In view of the same, and^for the^{reasons alike, these Writ} Petitions are allou,cd in terms^{of the order in W.P' No.44517of} 2018 & batch dated 22-12.2021,^{and respondents shall follow} the directions containcd^{in thc said order.No costs.}

¶152

¶153

Registry is directed to append^{a copy of the orde. passed} in W.P. Nc-r.44517 of 2Oi8 & batch^{dated22.12.2021,to this} order.

¶154

Consequently, miscellaneous^{petitionspending,ifany,} shall stand closed.

¶155

That Rule Nisi has been made absolute as above.

¶156

Witness the Hon'ble the Chief Justice UJJAL BHUYAN, on this Thursday, the Twenty Fourth day of November, Two Thousand and Twenty Two.

¶157

SD/-P.PADMANABHA REDDY ASSISTANT REGISTRAR /irRUE coPY// qD

¶158

SECTION OFFICER

¶159

¶160

1.The Revenue Secretary, Union of lndia, North Block, New Delhi.

¶161

2.The Chairman, Central Board of lndirect Taxes and Customs, North Block,^New Delhi.

¶162

3.The Commissioner of Central Tax. Ranga Reddy GST Commissionerate, Posnett Bhavan. Tilak Road. Ramkoti, Hyderabad, Telangana 500001.

¶163

4.The Deputy Commissioner of Central Tax, Nalgonda GST Division, D.No.6-2-20, Opp Beat lIarket. Hyderabad Road, Nalgonda - 508 001.

¶164

5.The Superintendent, Nalgonda GST Division, D. No.6-2-20, Opp. Beat^Market, Hyderabad Road, Nalgonda - 508 001.

¶165

6.The Branch Manager. State Bank of lndia, Anneparthy Village, Hyderabad^Main Road. Survey No 42, Nalgonda Dist - 508 001^.

¶166

The Deputy Commissioner and Another, O/o. The Deputy Commissioner Central Tax, Nalgonda GST D. No.6-2-20, Opp- Beat market, Hyderabad Road, Nalgonda - 508001

¶167

B. The Branch Manager. State Bank of lndia, 5-7-1, Prakasham Bazar Shopping Complex, Nalgonda - 508001^.

¶168

One CC to SRI A.V.RAGHU RAl/1. Advocate IOPUC]

¶169

10.One CC to SRI.G VIDHYADHAR^{REDDY, Advocate} [OPUC]

¶170

11.One CC to SRI CHOWDHARY^{SARADHI, Advocate (OPUC)}

¶171

12 One CC to SRI.SRINIVAS CHATURVEDULA,^{Advocate (OPUC)}

¶172

13 One CC to SRi^{A RAN/A KRISHNA REDDY (SC FORCBEC) [OPUC]}

¶173

14.Two CD Copies

¶174

1 5. One spare copy

¶175

(Along with a topy of the order in^{WP.No.44517of 2018 and batch dated} 22-12-2021 to this order)

B1h--

HIGH COURT

DATED:2411112022

COMMON ORDER

WP.NOS:18703, 19213, 19547, 1 9554, 22233,^{2247 3} AND 25237 0F 2A19

¶182

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¶183

ALLOWING THE WRIT^PETITIONS

¶184

WITHOUT COSTS.

¶185

(G)
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¶186

THE HON'BLE SII.I JUSTICE UJJAL BI{UYAN AND THE HON'BLE SI{'I.. JUSTICE P. MADIIAVI DEVI

¶187

\,RIT PETITION NO 17 of 2018. 12080. 12090. 12878. 13798, l7 17749.17909. 1791318823.20769.2t902. 23013. 26099. 29010 and 279 of2019 t2 1201 t34t 2tl0 3562 357 4667, 5068 and 5098 of 2020

¶188

COMMON ORDER :^(Per UB, J)

¶189

This order will disposc of the^present bunch of writ^petitions.

¶190

We have heard learncd counsel for the^parties.

¶191

In this batch of writ petitions, the basic grievance of the petitioners relates to levy ol interest on the gross returned income and not on the net cash amount.

¶192

Basic controversy centrcs around interpretation ofSection⁵⁰ of The Central Goods and Services Tax Act, 2017^(briefly 'the CGST Act' hereinafter).

¶193

It rnay be mentioncd that Section 50 of the CGST Act deals with intercst on dclaycd paymcnt of tax. Sub-section (l) thereof as it initially stood, rcads as undcr:

¶194

"Every person who is liable to pay tax in accordance with the provisions ol' this Act or the rules made thereunder, but fails to pay lhe tax or any^part thereof to the Govcrnment within the period^prescribed, shall for the period lor which thc tax or any^part thereof remains unpaid, pay, on his ou,n, interest at such rate, not exceeding eighteen per cent. as may be notilied by the Covcmmenl on thc rcconttnendations ol' the Council."

¶195

¶196

UB,J&P,ITD.J ll'.P.^1'.11517 of 2018 ond bat.h

¶197

It nray be mentioned that the proviso to Section 50 was substituted by Finance Acl, 2021 with retrospective effect from 01.0'I .2017 . Prior to substitution, the proviso read as under :

¶198

*PROVIDED that the interest on tax payable in respect of supplies made during a tax period and declared in the return for the said period fumished after thc due date in accordance with the provisions of section 39, except where such retum is fumished after commencement of any proceedings under section 73 or section 74 in respect of the said period, shall be levied on that portion of the tax that is paid by debiting the elcctronic cash ledger."

¶199

After the substitution, the proviso now reads as under : 'PROVIDED that the interest on tax payable in respect of supplies made during a tax period and deolared in the return for the said period fumished after the due date in accordance with the provisions ol sc-ction 39, except where such retum is furnished after commenccment of any proceedings under section 7J or scction 74 in respect of the said period, shall bc payablc on that portion of the tax which is paid by dcbiting the electronic cash ledger."

¶200

In view of the amendment carricd out, thc grievancc of the petitioners has been redressed. However. the details of interest to be paid by the petitioners are required to be workcd out by thc conccrncd authorities as per the amcndcd provision.

¶201

In that view of the matter and having rcgard to the amendments carried out by the Finance Act, 2021, all thc rvrit pctitions arc allorvcd

¶202

¶203

UB,J & PMD,J t'.P.No.4l517 of 2018 a batch

¶204

with the further direction that respondents shall issue notice and hear the petitioners beforc quantifying the interest to be paid by the petitioners as per the amended provision of Section 50 of the CGST

¶205

Act. No order as to costs.

¶206

Pending miscellaneous applications, ifany, shall stand closed.

UJJAL BI{UYAN, J

P. MADIIAVI DEVI, J

Date:22.12.2021

aJr

M/s Pavan Motors Pvt. Ltd. v. Union of India

Case brief

What is this about?

What did the court decide?

M/s Pavan Motors Pvt. Ltd. v. Union of India

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

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Coram

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