Order Date – 17 October 2023

Parties: Ms Global Plasto Wares Vs Assistant State Tax Officer, The State Tax Officer and The Join Commissioner, State GST Department

Facts –

• The Petitioner, Ms Global Plasto Wares, received a notice dated 28.02.2022 and the petitioner has paid the tax on 10.03.2022.
• It was contented by the petitioner that as the tax along with the interest payable under Section 50 within a period of thirty days of issue of notice, no penalty shall be payable and all proceedings in respect of the said notice would be deemed to be concluded.
• However the department submitted that that Sub-section (8) of Section 73 comes into play when an assessee has not paid the tax on the transactions. But where the assessee has collected from the others and not credited it to the Government. Hence penalty is leviable.

Issue –

• Whether an assessee who had paid the tax within thirty dasy from the issue of notice along with interest would be held to be liable for penalty?

Order –

• The Single Bench of Hon’ble High Court observed that the provisions of Sub-sections 6, 8 and 9 of Section 73 of the GST Act, 2017 provided that if a person chargeable to tax fails to deposit the tax collected by him within a period of thirty days from the due date of the payment of the such tax, Sub-section 8 will not have any effect and such a person is liable to pay penalty.
• Hence it was held that the Assessing Authority has taken the correct view in the matter and, therefore, no error of law which requires interference. Hence the present writ petition is dismissed.