Part-159-One Pager Snapshot to Cases on Section 50, 74, 140 of CGST Act, 2017

-Section 50- Once it is proved that amount of excess ITC though entered in the ledger in excess, was never utilized and since it was reversed prior to utilizing, demand of interest as well as penalty was not at all tenable

-Section 140-Transitional credit can only be disallowed because of non-conformity with condition stipulated in Section 140(3) and not because of considerations which were the subject matter of assessment under JVAT Act

Snapshot-13-Snapshot of Latest GST Cases-

-No Interest on Input Tax Credit availed but not utilized
-Interest on Refund granted in pursuance of appeal order
-Tax Rate on Renting of Warehouse



Case Subject



Cases Referred


Section 50

No Interest on Input
Tax Credit availed but
not utilized

Grundfos Pumps India
(P.) Ltd. v. Joint
Commissioner of GST
& Central Excise
[2023] 150 176

The liability to pay interest under Section 50(3) of the CGST on account of the Amendment in
2022 that has retrospective effect from 2017 is only when ITC has been wrongly availed and
In the present case, the original error of non-maintenance of ECL is admittedly attributable to
the department. Moreover, the petitioner has not utilized the credit.

Commissioner of Central
Excise v. Bombay Dyeing
Manufacturing Company-
(2007) 215 ELT3


Section 56

Interest on Refund
granted in pursuance
of appeal order

AC Impex v. Union of
India [2023] 150 175

The petitioner had filed refund applications against the export made which were rejected by
the revenue. The refund was initially rejected by subsequently granted in pursuance of the
Court Order.
The issue before the High Court was the date from which statutory interest under Section 56
of CGST Act would get triggered. The petitioner claims that interest should be triggered from
the date when the initial application for refund was filed and the revenue asserts that in terms
of the proviso appended to Section 56 of the CGST Act, interest will get triggered 60 days after
the date when this court passed an order directing consideration of the application.
The High Court held that the proviso to Section 56, as indicated above, is an exception to the
main part of the Section 56 of the CGST Act. The proviso is triggered only when the facts of a
case do not fall in the main part. The proviso envisages a situation where, while processing an
application for refund, the respondents/revenue are required to deal with a lis and the refund
is a consequence of that lis. Where there is no lis with regard to either the quantum or the
value, then in our view, the proviso will have no application. The wordings of the proviso in that
context are revealing. The proviso begins with the following sentence “Provided that where
any claim of refund arises from an order passed by an adjudicating authority or Appellate
Authority or Appellate Tribunal or court which has attained finality...”
Thus, petitioner was held to be right in its contention that interest should trigger in accordance
with the main part of Section 56 of the CGST Act, i.e., from 18.04.2018, and that interest should
run, both on CGST and DGST, up until the date when the amount was remitted to the

- Commissioner of Income
Tax, Mysore, TravancoreCochin and Coorg,
Bangalore and Anr. v. The
Indo Mercantile Bank Ltd
and Anr., 1959 Supp (2) SCR
- S. Sundaram Pillai and
Ors. v. V.R. Pattabiraman
and Ors., AIR 1985 SCC 582,
paragraph 27


HSN 9972
and HSN

Tax Rate on Renting of

Sudhakar Traders v.
State of Andhra
Pradesh [2023] 150 174
(Andhra Pradesh

Renting Warehouse to store Agricultural Produce is considered as supply of service, and the
same is not classifiable as "loading, unloading packing, storage or warehousing of agricultural
produce, under SI. No. 54(e) of SAC 9985 of the Notification-11/2017- C.T. (Rate) dated 28th
June 2017. It would be classifiable under SAC 997212 and would attract GST @ 18% vide
entry SI. No. 16 (iii) of Notification No. 11/2017 C.T (Rate) dated 28.06.2017.

-M/s SSSVK Cold Storage
Private Limited AAR
Andhra Pradesh