Case Details: A.S.R. Constructions vs. State Tax Officer (2025) 36 Centax 213 (Mad.)
Judiciary and Counsel Details
- C. Saravanan, J.
- Shri P.V. Sudakar, for the Petitioner.
- Shri TNC. Kaushik, Additional Government Pleader, for the Respondent.
Facts of the Case
The Petitioner approached the High Court challenging the impugned order issued pursuant to a show cause notice that had highlighted certain issues in the tax computation. The Petitioner submitted that the outward tax disclosed in GSTR-09 had already been discharged through a corresponding debit entry in the electronic ledger and contended that the levy of interest was disputed only on the methodology adopted for its computation. It was recorded that a portion of the demand had been confirmed and that certain issues identified in the proceedings had been closed, with the Petitioner accepting the associated late fee, leaving only the computation of interest on the delayed tax payment as the surviving dispute. The Petitioner contended that interest could be levied only for the period commencing from the statutory due dates applicable to GSTR-3B under section 39 and ending on the actual date on which tax was debited in the electronic ledger. The matter was accordingly placed before the High Court.
High Court Held
The High Court held that interest on delayed payment of tax under section 50 of the CGST Act and the Tamil Nadu GST Act, read with section 39 and rule 88B of the CGST Rules and the Tamil Nadu GST Rules, had to be computed strictly with reference to the statutory due dates prescribed for filing GSTR-3B. The Court observed that the relevant delay was to be determined by comparing those statutory due dates with the actual date of debit in the electronic ledger on which the tax was discharged. The Court further held that only the intervening period between the statutory due dates and the said debit date could attract interest under the applicable provisions. In conclusion, the matter was remitted to the jurisdictional officer to recompute the interest strictly in accordance with these observations and the writ petition was disposed.
