2024 (1) TMI 375 - HC - GST

Seeking sufficient time for payment of amount demanded by the respondent towards interest - provision of 2 days time for payment of demand - HELD THAT - It appears that the petitioner was not in a position to pay the demanded amount, since all of a sudden, the respondent had issued a notice demanding the interest of a sum of Rs. 2,80,247/-. Further, it appears that only a sum of Rs. 26,667/- was paid by the petitioner till date. This Court feels that the time period of 2 days is not sufficient to make the payment of demanded amount by the petitioner. Hence, this Court is inclined to grant a period of 3 months time to the petitioner for payment of balance amount demanded by the respondent towards interest in instalments prescribed. Petition disposed off.

Summary

Issues involved: Challenge to impugned order u/s 6.10.2023 demanding payment of GST interest, sufficiency of time period for payment.

Summary:
The writ petition challenged an order dated 06.10.2023 demanding payment of GST interest. The petitioner, a service provider to financial institutions, faced delays in GST payment for 2017-2018 to 2021-2022 due to technical glitches. The respondent issued a notice demanding Rs. 2,80,247/- as interest, with a 2-day payment deadline. The petitioner argued for more time, citing sudden notice issuance. The respondent, while reluctant, agreed to a reasonable extension. The Court, after hearing both sides, noted the petitioner's financial constraints and granted a 3-month payment period in three instalments: Rs. 80,000/- by 20.12.2023, Rs. 80,000/- by 20.01.2024, and Rs. 93,580/- by 20.02.2024. Failure to meet these deadlines would allow the respondent to initiate recovery proceedings. The writ petition was disposed of without costs, and the connected miscellaneous petition was closed.