The Madras High Court, in a recent ruling, held that, revenue may redetermine the amount demanded after consideration of submissions to be made by the assessee and allowed the attachment of bank account of the petitioner-assessee, V.L.S. Fibre till re-computation is completed.
The Single Bench of Justice Anita Sumanth observed that the assessee had not filed a reply to the notice of demand of interest under Section 50 of the Central Goods and Services Tax Act (CGST), 2017.
The petitioner contended that the computation of demand in the impugned order is incorrect and that the order is therefore liable to be revoked.
However, it was observed by the High Court of Judicature at Madras that no reply was filed by the petitioner. The petitioner was directed to file a reply to the notice. The revenue was directed to re-determine the computation in the light of the decision in M/s.Maansarovar Motors Private Limited v. The Assistant Commissioner & Others (2021).
The attachment of the bank account of the petitioner was also held to remain attached till the time when re computation is effected.
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