GSTAT says Interest Payable on Retrospective Price Escalation

The Tribunal held that retrospective price escalation increases the value attributable to the original clearance period, and subsequent payment of differential tax through debit notes under Section 142(2)(a) does not extinguish the corresponding interest liability. Relying on the Supreme Court's decision in Steel Authority of India Ltd., GSTAT restored interest of ₹1,38,56,623 while sustaining the relief from penalties under Section 122.