1. Heard Mr.Raichandani, learned counsel for the petitioner; Mr.Adik, learned counsel alongwith Ms.Maya Majumdar, learned counsel for respondent Nos.1 and 3 to 6; and Ms. Jyoti Chavan, learned AGP for respondent No.2.

2. Petitioner has filed the present writ petition seeking the following reliefs:-

“(a) that this Hon’ble Court be pleased to issue a Writ of Certiorari or a writ in the nature of Certiorari or any other writ, order or direction under Article 226 of the Constitution of India calling for the records pertaining to the Petitioners case and after going into the validity and legality thereof quash impugned letter dated 19.02.2020 (Exhibit “A”);

(b) that this Hon’ble Court be pleased to issue a Writ of Mandamus or a writ in the nature of Mandamus or any other writ, order or direction under Article 226 of the Constitution of India calling for the records pertaining to the Petitioners case and after going into the validity and legality thereof quash impugned letter dated 19.02.2020 (Exhibit “A”);

(c) that this Hon’ble Court be pleased to issue a Writ of Certiorari or a writ in the nature of Certiorari or any other writ, order or direction under Article 226 of the Constitution of India calling for the records pertaining to the Petitioners case and after going into the validity and legality thereof and hold that interest would be payable only on the cash component of the liability under section 50 of the Central Goods and Services Tax Act, 2017;

(d) that pending the final hearing and disposal of the present petition, this Hon’ble Court be pleased to stay the recovery of interest in terms of letter dated 19.02.2020.”

3. On 8th September, 2020 this court had issued notice.

4. Pursuant to notice, respondent Nos.1 and 3 to 6 have filed a common affidavit. In the said affidavit administrative instructions dated 18th September, 2020 issued by Government of India, Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes and Customs (GST policy) has been annexed. Since the above administrative instructions are relevant, the same is extracted hereunder in its entirety:-

“Based on the recommendations of the 35 th meeting of the GST Council held on 21st June, 2019, the provision of section 50 was amended vide section 100 of the Finance (No.2) Act, 2019 to provide for charging interest on the net cash tax liability. The said amendment was to be made effective from a date to be notified by the Government. Accordingly, the said provision was made effective vide notification No.63/2020 – Central Tax dated the 25th August, 2020, w.e.f. 01.09.2020.

2. The GST Council, in its 39 th meeting, held on 14th March, 2020 recommended interest to be charged on the net cash tax liability w.e.f. 01.07.2017. The retrospective amendment in the GST laws would be carried out in the course through suitable legislation.

3. Post issuance of notification 63/2020-Central Tax dated the 25th August, 2020, there was apprehensions raised by taxpayers that the said notification is issued contrary to the Council’s recommendation to charge interest on net cash liability w.e.f. 01.07.2017. Consequently, a press release, dated 26.08.2020 was issued to clarify the position. Further, in order to implement the decision of the Council in its true spirit and at the same time working within the present legal framework, it has been decided to address the issue through administrative arrangements, as under:

a. For the period 01.07.2017 to 31.08.2020 field formations in your jurisdiction may be instructed to recover interest only on the net cash tax liability (i.e. that portion of the tax that has been paid by debiting the eletronic cash ledger or is payable through cash ledger); and b. Wherever SCNs have been issued on gross tax payble, the same may be kept in Call Book till the retrospective amendment in section 50 of the CGST Act is carried out.

4. Difficulty, if any, in the implementation of these instructions may please be brought to the notice of the Board.”

5. From a reading of the above, it is seen that as per the administrative instructions issued by the Central Board of Indirect Taxes and Customs, to implement the decision of the GST council it has been decided that for the period 1 st July, 2017 to 31st August, 2020 field formations have been instructed to recover interest only on the net cash liability i.e. that portion of the tax that has been paid by debiting the electronic cash ledger or is payable through cash ledger. In those cases where show cause notices have been issued calling upon the noticees to make payment on gross tax liability, those have been directed to be kept in the Call Book till retrospective amendment is made in Section 50 of the Central Goods and Services Tax Act, 2017.

6. In view of the aforesaid decision taken by the Central Board of Indirect Taxes and Customs, grievance of the petitioner no longer survives.

7. Writ petition is accordingly disposed of in terms of the stand taken by the respondents through the above administrative instructions of the Central Board of Indirect Taxes and Customs.

8. This order will be digitally signed by the Private Secretary/Personal Assistant of this Court. All concerned will act on production by fax or email of a digitally signed copy of this order.