Bhagat Cars Pvt Ltd had moved to high court with a situation where during September 2018 to March 2019, the petitioner had purchased motor vehicles on payment of GST. At the end of every month, the petitioner was having more ITC than output tax payable on sale of motor vehicles. However, due to delay in reconciliation of sale discount claim figures with the manufacturer of vehicles, the petitioner failed to file monthly return by due date. The respondent has demanded interest on entire output tax even though nothing was payable or paid from cash credit ledger.
So, petition was filed seeking declaration that interest can’t be demanded on the ground of delay in filing return, when more ITC than output liability was available at the end of said tax period. The high court directed the commercial tax officer to supply a copy of the order to the petitioner within 2 weeks and approach the tribunal for the same. The Punjab and Haryana high court ruled that all the disputes related to interest on goods and services tax (GST) and their appeal will be dealt by the GST Tribunal.