2020 (8) TMI 629 - HC - GST

Freezing of petitioner's bank account - the petitioner started depositing the money (as ordered) with the respondent to clear the GST liability, however because of this ongoing pandemic situation the petitioner suffered financial losses as also the petitioner is not receiving its due money from its customers as the pandemic has adversely effected the business of his clients too - HELD THAT - Though, the learned Standing Counsel for CGST Department/ respondent objected to the extension of the time but considering the pandemic situation the period of the clearing the entire liability is extended to further 120 days from today and the petitioner is directed to clear all its dues, as per order dated 16.03.2020 and in the meanwhile no coercive steps should be taken against the petitioner and its officials during this period. Application disposed off.

Summary

Issues:
Extension of time to clear GST liability due to financial losses during the ongoing pandemic situation.

Analysis:
The judgment pertains to a petition where the petitioner had a GST liability of approximately ?11.5 crores in Delhi and ?59.24 crores PAN India. Initially, an order was passed requiring the petitioner to deposit ?5.5 crores within two days of defreezing its accounts and clear the remaining liability within 120 working days to avoid coercive action under the CGST Act. However, due to the ongoing pandemic affecting the petitioner's financial situation and cash flow from customers, an extension of 120 days was granted to clear the entire liability. The court directed the petitioner to adhere to the previous order and suspended any coercive actions against the petitioner and its officials during this extended period. The application was disposed of with no costs awarded.

This judgment showcases the court's consideration of the petitioner's financial difficulties arising from the pandemic, leading to an extension of the time limit to clear the GST liability. Despite objections from the CGST Department, the court balanced the interests of both parties by granting additional time for payment while ensuring compliance with the original order. The decision highlights the court's flexibility in adapting to unforeseen circumstances and providing relief to parties facing challenges beyond their control, such as financial losses due to external factors like a pandemic.