In an order passed dated 1st April 2023 issued to Sita Ram Pvt. Ltd., the Commissioner of Central Tax, being Revisionary Authority has confirmed…
CA Final · Indirect Tax Laws · PYQS · May 2024
In an order passed dated 1st April 2023 issued to Sita Ram Pvt. Ltd., the Commissioner of Central Tax, being Revisionary Authority has confirmed IGST demand of 1400 crore, penalty of 200 crore and interest of 20 crore. Sita Ram Pvt. Ltd. admits the tax liability, penalty and interest to the extent of 200 crore, 20 crore and 10 crore respectively but wishes to litigate the balance amount of demand and thus, Sita Ram Pvt. Ltd. deposits the required amount of pre-deposit on 12th April 2023 and files an appeal with the GSTAT. GSTAT decides the appeal in favour of Sita Ram Pvt. Ltd. on 12th June 2023. Sita Ram Pvt. Ltd. submits an application seeking refund of the pre-deposit along with applicable interest on 2nd July 2023 and the department acknowledges the application on the same day. The amount of pre-deposit is refunded to Sita Ram Pvt. Ltd. on 15th October 2003. With reference to provisions of the GST law, compute the amount of pre-deposit required to be deposited before filing an appeal to GSTAT and interest payable by the Department on refund of such pre-deposit, if any, along with necessary explanations.
Suggested Answer and Working Notes:
The amount of pre-deposit to be made by Sita Ram Pvt. Ltd. for filing the appeal to the GSTAT is as under- (i) full amount of tax, interest and penalty as admitted by it, i.e.230 (200+20+10) crores and (ii) 20% of the remaining tax in dispute, i.e.240 crore (20% of 1,200 crore) subject to a maximum of 100crores (in case of IGST). = 330 crores If the pre-deposit made by the appellant before the Tribunal is required to be refunded consequent to any order of the Tribunal, interest @ 9% p.a. shall be payable from the date of payment of the amount till the date of refund of such amount. Period of delay counted from 12 th April 2023 is 186 days Interest (rounded off) = 100 crore × 9% × 186/366 = 4,57,37,705
Topics: Appeals and Revision
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