Gauhati HC directs Taxpayer to approach GST Authority to pay Interest liability in installment due to COVID-19 to restore Registration [Read Order]

Guwahati High Court - Taxpayer - GST Authority - interest liability - COVID-19 - restore Registration - Taxscan

The Gauhati High Court directed the taxpayer to approach the GST Authority to pay interest liability in installment due to COVID-19 to restore Registration.

The petitioner, M/S Aich Brothers is aggrieved because of striking out of the registration of the petitioner firm by the respondent GST causing immense difficulties in getting released the payment due to him against various contractual works in different organizations namely Oil India Limited, Digboi Refinery etc.

Ms. M Bhattacharjee counsel for the petitioner contended that whatever outstanding was shown in the portal against the name of the petitioner maintained by the respondent GST was duly paid but even then the registration was not restored for which the petitioner has filed this writ petition seeking for an appropriate direction.

Mr. Keyal, the learned Senior Standing Counsel appearing for the GST on 08.07.2021 while the matter was taken up for motion informed this court that as per the instruction available with him, the petitioner is required to pay an amount of Rs. (73,707X2) which is shown outstanding against the interest liability for delayed filing of returns GSTR-3B for the period from October 2018 to April, 2020.

When the matter was taken up it was submitted by Ms. Bhattacharjee that as per instruction received by her, the petitioner is ready to pay the interest liability subject to necessary demand made by the respondent GST. It is further contended by Ms. Bhattacharjee that even after the liability shown in the portal was paid, the registration was not restored thereby causing as hereinabove stated immense difficulty in getting the contractual dues from the various organizations.

Ms. Bhattacharjee sought for an appropriate direction to accept the amount shown as interest liability by the respondent GST in installment due to the financial crisis faced by the petitioner. Mr. Keyal on the other hand objected to the submission made by Ms. Bhattacharjee for granting the liberty to pay the arrear amount in installment.

The Single Judge Bench of Justice Prashant Kumar Deka observed that due to non payment of the interest liability for the aforesaid period from October, 2018 to April, 2020 for delayed filing of returns GSTR-3B, the petitioner is required to make the payment and only thereafter, as submitted by Mr. Keyal, the registration of the petitioner shall be restored by the respondent GST. On the other hand, the submission of Ms. Bhattacharjee that due to striking out of the registration of the petitioner he could not collect the contractual dues from the various organizations against the contractual job also cannot be disbelieved.

“In view of the same, in my considered opinion let the petitioner approach the concerned authority more specifically the respondent No. 3 along with an application to permit the petitioner to pay the interest liability referred hereinabove in installment as a special case keeping in view the pandemic situation arising out of Covid-19 and on having submitted the said application/representation along with order passed today the same shall be disposed of within a period of outer limit of 7 (seven) days from the date of receipt of the said representation. If all the dues are cleared as per the direction of the respondent, the registration of the petitioner shall be restored immediately,” the court said.

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AICH BROTHERS vs THE UNION OF INDIA AND 6 ORS.

Counsel for Appellant:   MS. M BHATTACHARJEE

Counsel for Respondent:   SC, GST

CITATION:   2021 TAXSCAN (HC) 284

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