Tvl. Noyyal Common Effluent Treatment Company Ltd. v. Assistant Commissioner (ST)
In favour of the revenue
The ruling in brief
Tvl. Noyyal Common Effluent Treatment Company Ltd. filed W.P. No. 26246 of 2024 before the Madras High Court; judgment 8 June 2026. The company initially paid GST at a lower rate on its supplies; after departmental intimation that a higher rate applied it paid the differential tax. It challenged interest on the belated portion. The court held interest arises under Sections 50 and 75 in determination and recovery proceedings and continues to be payable even after the differential tax is paid or offered in instalments. Recovery under Section 79 was justified. Writ dismissed; outcome in favour of revenue. Rule 142 featured in procedural context. Summary for rate-dispute and interest exposure; not legal advice. CETPs and utilities correcting rate misclassification should budget interest from the original due date, not only from intimation.
For information only — not legal advice. Read the full judgment and applicable law before relying on this summary.
Provisions considered
- CGST S.50 — Interest on delayed payment of tax.
- CGST S.75 — General provisions relating to determination of tax.
- CGST S.79 — Recovery of tax and other dues payable to Government.
- CGST S.74 — Determination of tax not paid or short paid involving fraud or suppression.
- CGST Rules R.142 — Notice and order for demand of amounts payable under the Act.
Source documents
Similar rulings
In favour of the assessee
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