HC grants liberty to approach Court if State realizes interest on gross tax liability u/s 50

Case details:  BGR Mining & Infra Ltd. v. State of Jharkhand - [2021] 128 taxmann.com 149 (Jharkhand)

Judiciary and Counsel Details

• • Aparesh Kumar Singh and Mrs. Anubha Rawat Choudhary, JJ.
  • Sumeet Gadodia and Ranjeet Kushwaha, Advs. for the Petitioner.
  • Mrs. Darshana Poddar Mishra, Salona Mittal, Ms. Surabhi, Navneet Toppo and P.A.S. Pati for the Respondent.

Facts of the Case

The petitioner had filed appeal against adjudication order levying interest upon it under section 50 on gross tax liability. The appeal was dismissed and therefore, it field writ petition against the same. It was submitted that it had discharged its interest liability on net tax liability i.e., interest on tax paid through an electronic tax ledger.

High Court Held

The department submitted that after issuance of Administrative Instructions by CBIC by Circular dated 18-9-2020, State authorities were also imposing interest on Net Tax Liability. Therefore, the Honorable High Court held that after issuance of the above Administrative Instructions by CBIC, the State authorities are also imposing interest on Net Tax Liability and there is no purpose in keeping the writ petitions pending. However, the liberty is reserved with the petitioner to approach the Court in case the department chooses to realize interest on the gross tax liability.