2023 (3) TMI 1167 - HC - GST

Demand of interest and late payment fees - unable to file its GST returns on account of technical glitches - interest or late payment charges can be levied for the period technical glitches had prevented the petitioner from filing its returns, or not - communication dated 22.02.2023, informing that a sum of ₹7,45,618/- is payable by the petitioner on account of late payment fee and interest - this communication can be treated as SCN or not. HELD THAT - The communication dated 22.02.2023, can be considered as a notice for engaging in consultation prior to the issuance of the show cause notice. The petitioner would be afforded the opportunity of hearing on the question whether any interest or the late payment charges as mentioned in the communication dated 22.02.2023 are payable by it. In the event, the respondents consider that there is any delay on part of the petitioner after the technical glitches have been resolved, it would be open for the respondents to issue a show cause notice for the recovery of any amount of interest, or other charges payable by the petitioner, in accordance with law. Petition disposed off.

Summary

Issues Involved:
The issues involved in this case include technical glitches preventing the petitioner from filing GST returns, demand for interest and late payment fees by the respondents, and the communication dated 22.02.2023 regarding the payment due.

Technical Glitches and Interim Order:
The petitioner faced technical glitches preventing the filing of GST returns, leading to an interim order from the Court on 09.10.2019, directing no coercive steps against the petitioner for the delayed filings.

Resolution of Technical Glitches:
The technical glitches were subsequently resolved, allowing the petitioner to file its returns.

Demand for Interest and Late Payment Fees:
Although the petitioner filed its returns, it objected to the demand for interest and late payment fees by the respondents. The petitioner argued that it should not be liable for these charges due to the technical glitches causing the filing delay.

Communication and Show Cause Notice:
A communication dated 22.02.2023 stated a payable amount of Rs. 7,45,618 for late payment fee and interest. The respondents clarified that this communication was not a show cause notice but a calculation statement. They acknowledged that no interest or late payment charges could be imposed for the period of technical glitches.

Court's Decision:
The Court considered the communication as a notice for consultation before a show cause notice. The petitioner will have a hearing opportunity to contest the payment of interest and late payment charges. If any delay in filing returns post-technical glitch resolution is found, the respondents can issue a show cause notice for recovery according to the law.

Conclusion:
The petition was disposed of with the above observations, ensuring a fair hearing for the petitioner regarding the disputed interest and late payment charges.