Madras HC Stayed Recovery Proceedings Till Disposal of Application for Waiver of Interest as per GST Council Recommendations

Case Details: Unitac Energy Solutions (India) (P.) Ltd. v. Assistant Commissioner (ST) - [2024] 164 taxmann.com 397 (Madras)

Judiciary and Counsel Details

• C. Saravanan, J.
• Anil D. Nair, Senior Counsel & S.P. Sri Harini for the Petitioner.
• R. Suresh Kumar, Additional Government Pleader for the Respondent.

Facts of the Case

The petitioner had suffered adverse assessment orders for the assessment years 2017-18 to 2020-21. It had discharged entire tax liability and a part of interest. It filed application under Section 80 of GST Act for waiver of interest but the department was in hurry to recover the amount. It filed writ petition to direct the authority to dispose of application.

High Court Held

The Honorable High Court noted that the recommendation was made in 53rd GST Council Meeting held on 22.06.2024 regarding the waiver of interest and penalties for demands raised under Section 73 of the GST Act, 2017 for Assessment Years 2017-18 to 2019-20 subject to the condition that the full tax amount is paid by 31st March, 2025.

In the present case, the petitioner has discharged the entire tax liability and a part of the interest for a sum of Rs.9,00,000/- out of Rs.13,00,000/- as on date. Therefore, the Court directed the authority to dispose of application of assessee within 60 days in light of aforesaid recommendation of GST council and also directed to keep all recovery proceedings in abeyance for a period of 60 days.