Reversal of ITC by petitioner through cash remittance is very well subjected to levy of interest: High Court
Reversal of ITC by petitioner through cash remittance is very well subjected to levy of interest: High Court Though interest on reversal of ITC by way of adjustment in credit ledger is set aside by High Court. Brief of Case The challenge is to order dated 27.01.2021 levying interest under Section 50 of the CGST Act relating to both interest on cash remittances as well as remittances by way of adjustment of electronic credit register. As far as the reversal by way of adjustment of credit ledger is concerned, it is covered by a decision in the case of Maansarovar Motors Private Limited V. The Assistant Commissioner. Both learned counsel concur on the position that in the light of the aforesaid decision, the levy to this extent is to be set aside and it is hence accordingly set aside. As far as levy of interest on cash remittance is concerned, learned counsel for the petitioner only relies on the provisions of Section 42 of the Act which provides for a notice to be issued by the Assessi