Telangana HC grants interim stay while keeping the matter of retrospective applicability of Section 50 amendment under examination

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M/s Raghava Constructions (“the Petitioner”) filed Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the writ petition, the High Court may be pleased to stay the proceedings of letter C. No. V/04/06/2019-Arrears dated July 31, 2019, pending disposal of the writ petition.


The Hon’ble Telangana HC under WP No. 16885 of 2019 dated August 7, 2019 observed that as to whether the amendment to Section 50 of the CGST Act, 2017 (“CGST Act”) would be retrospective applicable and whether a notice was liable to be issued to the Petitioner before attachment of his account requires examination.

Accordingly, the HC granted interim stay of the proceedings as prayed for.

Citation: [TS-610-HC-2019(TEL)-NT]

Important legal provisions:

Section 50 of the CGST Act deals with interest on delayed payment of tax. In this Union Budget 2019-20 (vide the Finance Act, 2019), new proviso is inserted in sub-section (1) of Section 50, so as to provide for charging interest only on the net cash tax liability, except in those cases where returns are filed subsequent to initiation of any proceedings under Section 73 (determination of tax liability in non-fraud cases) or Section 74 (determination of tax liability in fraud cases) of the CGST Act.