2019 (8) TMI 1077 - HC - GST

Demand of Interest - delayed payment of GST for seven months - difficulty in utilizing the Input Tax credit due to technical glitch - CGST Act - transitional input tax credit - whether the writ petitioner encountered technical glitch in payment of monthly GST for the aforesaid seven months i.e., from July 2017 to January 2018? HELD THAT - Prima facie, the aforesaid complaint made by the writ petitioner to the GST Seva Kendra as well as the screen shots which have been reproduced show that the writ petitioner had encountered difficulty, but in the light of the disputation, this Court is of the considered view that it would be appropriate to leave it to the technical body concerned to decide whether there was a technical glitch at all - With regard to the technical body which would decide/resolve such issues, attention of this Court is drawn to a circular dated 03.04.2018 issued by the Government of India, Ministry of Finance, Department of Revenue Central Board of Indirect Taxes and Customs. Adverting to the opening paragraph and paragraph four of this Circular, it is submitted that Government has formed an IT-Grievance Redressal Mechanism. This Court is informed that any complaint to the aforesaid ITA Grievance Redressal Committee should be given to the jurisdictional Principal Commissioner, who in turn will forward it to the aforesaid Committee through the GST network or what is the known as GSTN. Writ petitioner shall provide a bank guarantee for ₹ 25 lakhs in a format required by the first respondent within one week from the date of receipt of a copy of this order - One of the share holding directors of the writ petitioner company shall provide a personal bond in a format as required by first respondent for the balance sum within one week from the date of receipt of a copy of this order. To be noted after deducting 25 lakhs bank guarantee, the balance sum is ₹ 1,39,49,541/-. Petition disposed off.

Summary

Issues:
1. Delay in payment of GST from July 2017 to January 2018.
2. Technical glitch in the Tax Department's portal affecting GST payments.
3. Dispute over interest payment of over &8377; 1.64 crores.
4. Establishment of IT-Grievance Redressal Mechanism for tax payers facing technical glitches.

Issue 1: Delay in payment of GST from July 2017 to January 2018
The judgment addresses the case of a writ petitioner who encountered difficulties in paying Goods and Services Tax (GST) from July 2017 to January 2018 due to a technical glitch in the Tax Department's portal. The petitioner had credits in the form of Input Tax Credit (ITC) as of June 30, 2017, which could have been used to pay GST. The delay in payment led to a demand for interest of over &8377; 1.64 crores. The court noted that the technical glitch was acknowledged, and the petitioner made efforts to rectify the issue.

Issue 2: Technical glitch in the Tax Department's portal affecting GST payments
The petitioner presented a complaint to the GST Seva Kendra and provided screen shots as evidence of the failed attempts to pay GST using available ITC. The court observed that while there was no dispute regarding the availability of ITC, the main contention revolved around whether the technical glitch indeed hindered the payment of GST for the specified period. The court decided to defer this determination to the IT-Grievance Redressal Committee established by the Government for addressing such technical issues.

Issue 3: Dispute over interest payment of over &8377; 1.64 crores
The court directed the writ petitioner to provide a bank guarantee and a personal bond to cover the outstanding sum after deducting the bank guarantee amount. Additionally, the petitioner was instructed to communicate the technical glitch details to the Principal Commissioner of GST and Central Excise within a specified timeframe. The IT-Grievance Redressal Committee was tasked with reviewing the complaint and providing a decision promptly.

Issue 4: Establishment of IT-Grievance Redressal Mechanism for tax payers facing technical glitches
The court highlighted the existence of an IT-Grievance Redressal Mechanism established by the Government to address difficulties faced by taxpayers due to technical glitches on the GST portal. The mechanism aimed to provide relief to taxpayers by allowing the filing or amending of forms or returns affected by such glitches. The court emphasized the importance of utilizing this mechanism to resolve issues related to technical glitches effectively.

In conclusion, the judgment focused on resolving the issues related to the delay in GST payment, technical glitches affecting the payment process, the dispute over interest payment, and the utilization of the IT-Grievance Redressal Mechanism to address such technical issues efficiently. The court's decision aimed to facilitate a fair resolution while ensuring compliance with the established procedures and mechanisms.