2020 (9) TMI 208 - HC - GST

Maintainability of petition - Seeking time for filing of the reply to this application - HELD THAT - What happens in the filing of return is a positive act on the part of assessed and corresponding acceptance of such positive act by the revenue. In the present case, the positive act in the nature of filing of the return did take place, but the effort was negated by the respondents and now blame is being put on the system that respondents have adopted to enable e-filing of tax returns. In such a case the system can always be amended suitably for the system is created by human beings and not the viceversa. Two weeks time granted to the respondents to file reply in the matter. Meanwhile, respondents shall make suitable amends to the system and accept the returns filed by the petitioner on or before the next date. If the petitioners returns are not accepted online, the petitioner shall be allowed to file them manually, which returns shall be taken on record by the respondents - Stand over for two weeks.

Summary

Issues:
1. Failure of respondents to accept returns filed by the petitioner.
2. Request for time to file reply and make suitable amends to the system.
3. Challenge on the maintainability of the petition raised by respondents.

Analysis:
The High Court noted that the respondents failed to accept the returns filed by the petitioner despite being granted liberty to file returns and pay taxes to avoid future interest liability. The respondents did not seek modification of the court's order and are now seeking time to file a reply. The court emphasized that filing a tax return involves a positive act by the assessed party and its acceptance by the revenue. The court criticized the respondents for blaming the system for negating the petitioner's efforts, stating that the system can be amended if necessary.

Regarding the request for time to file a reply and make system amendments, the court granted two weeks to the respondents. The court directed the respondents to make suitable amends to the system and accept the petitioner's returns either online or manually. If the online filing is not accepted, manual filing should be allowed, and the returns will be taken on record by the respondents.

Additionally, the court allowed two weeks for the respondents to make necessary changes to the system. The matter was adjourned for two weeks for further proceedings. The court ordered the communication of this decision to the respective counsels through permissible modes as per the law, such as email or WhatsApp.