2017 (9) TMI 1357 - HC - GST

Court questions GSTN's manual acceptance of advance ruling applications, seeks clarification on postponement authority.

The court addressed the delay in the availability of the web portal for advance ruling applications on the GST Portal. Despite the portal not being ready ... Facility for filing advance ruling applications - manual filing and fee payment facility - authority to delay commencement of statutory scheme - compliance with statutory timelinesFacility for filing advance ruling applications - manual filing and fee payment facility - The state of readiness of the GST portal for filing advance ruling applications and the interim arrangement proposed by GSTN for manual acceptance and online fee deposit. - HELD THAT: - The Court recorded the GSTN communication dated 15th September 2017 which stated that the web portal for uploading applications for advance ruling would be available tentatively by 15th January 2018, and that, as an interim measure, GSTN would accept advance ruling applications manually (including from unregistered persons) with a facility to deposit the prescribed fee through the GST Portal available with effect from 20th October 2017. On these factual representations the Court observed that the portal would not be ready until 15th January 2018 and that GSTN proposed to permit manual filing with online fee payment as an alternative arrangement. [Paras 1, 2]Recorded that the GSTN has informed the Court that the portal will be ready by 15th January 2018 and that manual filing with an online fee-payment facility will be made available from 20th October 2017.Authority to delay commencement of statutory scheme - compliance with statutory timelines - Whether GSTN had authority to postpone availability of the interim manual filing and fee-payment facility until 20th October 2017 despite the provisions of law already being in force, and the adequacy of respondents' explanations on that point. - HELD THAT: - The Court noted that it was unclear under what legal authority GSTN had fixed 20th October 2017 as the date for making the interim manual filing and fee-payment facility available when the statutory provisions were already in force. Neither counsel for GNCTD nor counsel for the Union of India could provide an explanation. Given the absence of an authoritative answer, the Court required GSTN to show cause and furnish the basis for the postponement before the Court. [Paras 3, 5]Notice issued to Respondent No. 5 (GSTN) to explain the legal basis for postponing the interim facility; returnable on 27th September 2017, with service permitted by all modes including dasti.Final Conclusion: The Court recorded GSTN's timelines for the portal and interim manual filing with online fee payment, found no explanation on the legal basis for the chosen postponement date, and issued notice to GSTN returnable on 27th September 2017. Issues:Delay in availability of web portal for advance ruling application on GST Portal; Authority of GSTN to postpone alternative system of filing applications manually.Analysis:The judgment addresses the delay in the availability of the web portal for uploading applications seeking an advance ruling on the GST Portal. The court highlights that the portal is not expected to be ready until 15th January 2018. In response to this delay, the GSTN has decided to accept applications manually, including those from unregistered persons, with the option to deposit the prescribed fees through the GST Portal. However, the court questions the legal authority under which the GSTN has chosen to postpone the availability of this alternative system until 20th October 2017, despite the existing legal provisions being in force. Neither the counsel for GNCTD nor the Union of India is able to provide a satisfactory explanation for this decision.Furthermore, the court notes that Mr. Satyakam, the Additional Standing Counsel, clarifies that he represents multiple respondents in the case. In light of the issues raised regarding the delay and the legal basis for the postponement, the court decides to issue a notice to the GSTN/Respondent No. 5 through all available modes, with the returnable date set for 27th September 2017. Additionally, the court orders that notice should be served dasti as well, emphasizing the importance of ensuring proper communication and adherence to legal procedures in the case.