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2026:CGHC:21601

NAFR

HIGH COURT OF CHHATTISGARH AT BILASPUR

WPT No. 115 of 2019

 Vandana Global Ltd. Through The Authorized Signatory, Sanjay

Sharma, S/o Shri Bhagirath Sharma, Aged About 48 Years, A-104,

Akriti Vihar, Main Road, Amlidih, Opp. Sbi Atm, Raipur

Chhattisgarh, District : Raipur, Chhattisgarh

... Petitioner(s)

versus

1. Principal Commissiioner Central Gst Central Excise Building, Tikra

Para, Dhamtari Road, Raipur, Chhattisgarh, District : Raipur,

Chhattisgarh

2. Commissioner Sgst, North Block, Sector-19, Atal Nagar, Raipur

Chhattisgarh, District : Raipur, Chhattisgarh

3. Assistant Commissioner Sgst, North Block, Sector-19, Atal Nagar,

Raipur Chhattisgarh, District : Raipur, Chhattisgarh

4. Goods And Service Tax Network Through Chairman, Address-

East Wing, 4th Floor, World Mark- 1, Aerocity, New Delhi -110037,

District : New Delhi, Delhi

... Respondent(s)

For Petitioner : Mr. Bhishma Ahluwalia, Advocate along

with Ms. Shalini Kashyap, Advocate

For Respondents : Mr. Maneesh Sharma, Advocate

No. 1 and 4

For Respondents : Ms. Anuradha Jain, Dy. G.A.

No. 2 and 3

Hon’ble Shri Justice Rakesh Mohan Pandey

Judgment On Board

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8.5.2026

1) By way of this petition, petitioner has sought following reliefs:-

10.1 It is prayed that this Hon'ble Court

may kindly be pleased to issue a Writ in

nature of Certiorari and/or any other

appropriate writ quashing and setting

asideimpugned demand notices dated

8.7.2019by declaring the same to be

illegal and in-operative in law to the

extent it seeks to demand interest on

entire output tax liability without allowing

reduction of valid input tax credit

available to the Petitioner.

10.2 This Hon'ble High Court may kindly

be pleased to issue Writ in the nature of

mandamus and/or any appropriate writ

to hold that the Respondent No. 1 & 2

while executing its administrative

function through the GSTN Portal is

illegal to the extent it is not allowing the

Petitioner to pay its tax dues partly

through its credit register unless

complete tax payment is made; and

10.3 This Hon'ble Court may kindly be

pleased to issue Writ in nature of

mandamaus and/or any other

appropriate writ directing the

Respondent No. 1, 2 &5 to reconfigure

the online GSTN Portal in line with the

legal provisions.

10.4 This Hon'ble Court may kindly be

pleased to issue Writ in the nature of

Mandamus and/or any appropriate writ

commanding/directing Respondents No.

3 to recompute the interest liability for

delay in payment of tax after considering

admissible and available credit as

utilized on the due date for payment of

output tax liability;

10.5 Any other relief/reliefs which this

Hon'ble Court may think fit and proper in

the facts and circumstances of the case,

with cost of the petition may also please

be granted to the petitioners.

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2) Learned counsel for the petitioner submits that Assistant

Commissioner SGST, Raipur has issued a show cause notice

against the petitioner on 8.7.2019 making demand of interest on

late tax payment. He further submits that an amendment has been

inserted in the proviso appended to Section 50 of Central Goods

and Service Tax Act, 2017 [hereinafter to be referred as ‘Act of

2017’] with retrospective effect which mandates interest payments

for delayed GST only on net cash liability w.e.f. 1^st July, 2017. He

contends that in light of the afore-stated amendment, the show-

cause notice deserves to be set aside.

3) On the other hand, learned counsel appearing for the respective

respondents would oppose. They submit that petitioner is required

to pay the interest on the delayed payment of tax for cash portion.

4) I have heard learned counsel for the parties and perused the

material available on record.

5) By gazette notification dated 1.6.2021, following amendment has

been inserted in Section 50 of Act of 2017 :-

112. In section 50 of the Central Goods and

Services Tax Act, in sub-section (1), for the

proviso, the following proviso shall be

substituted and shall be deemed to have been

substituted with effect from the 1st day of July,

2017, namely:-

"Provided that the in