2017 (10) TMI 254 - HC - GST

High Court directs prompt system issue reporting via email for tax compliance; stays coercive actions, extends deadline, allows late applications.

The Rajasthan High Court directed individuals facing system login issues to inform the District Information Officer via email for prompt resolution due to ... System failure and access issues - designated District Information Officer - email notice as substitute for online filing - expeditious resolution of technical problems - protection from coercive action for delayed compliance - extension of composition scheme deadline - acceptance of composition applications with retrospective effectSystem failure and access issues - designated District Information Officer - expeditious resolution of technical problems - Procedure to be followed where assessee or tax practitioner is unable to log in due to system non-responsiveness and obligation to provide remedial contact points. - HELD THAT: - The Court recorded that the electronic system was not functioning adequately and directed that any assessee, Chartered Accountant or tax practitioner who is unable to log-in must immediately inform the District Information Officer of the concerned district by email. The Court required that District-level contact details be provided so that instances of non-responsiveness can be brought to the appointed officer's notice and addressed. The remedy is administrative and aimed at ensuring prompt troubleshooting and redressal of access problems. [Paras 2, 3]Where login fails, affected persons shall inform the District Information Officer by email and the system problems shall be addressed expeditiously.Email notice as substitute for online filing - designated District Information Officer - Requirement for provision of contact addresses of State and Central officers to facilitate email reporting and resolution of login/filing issues. - HELD THAT: - The Court directed that the address of each District head be provided. Specific responsibility was allocated: Mr. R.B. Mathur to provide the State Officer's address and Mr. Sharma and Mr. Ranka to supply the Central Government officer's address. This ensures designated points of contact at both State and Central levels to receive email reports and coordinate resolution of technical difficulties impeding online compliance. [Paras 3]Addresses of the designated State and Central officers and each District head shall be furnished to enable email reporting and follow-up.Protection from coercive action for delayed compliance - email notice as substitute for online filing - Whether coercive actions (penal interest, late fees and prosecution) may be taken against clients whose representatives notify login failure by email. - HELD THAT: - Having accepted that system failures prevented online compliance, the Court ordered that no coercive action, including penal interest, late fees or prosecution, shall be taken against any client of the petitioners' members who are referred to in the petition and who inform the designated officer by email about login/filing problems. The protection is conditional on timely email notification as prescribed by the directions. [Paras 4]No coercive action shall be taken against affected clients who report login/filing difficulties by email to the designated officers.Extension of composition scheme deadline - acceptance of composition applications with retrospective effect - Extension and acceptance of applications under the composition scheme where applicants could not apply by the original deadline due to system issues. - HELD THAT: - The Court extended the composition scheme deadline to 30.9.2017 and directed that assessees desirous of availing the scheme may apply. It further ordered that those who could not apply under the composition scheme up to 16.8.2017 shall have their applications accepted, and where a case does not fall within the composition log-in, the applicant may send the application by email; such applications shall be accepted with effect from 1.7.2017. The relief thus comprises both an extension of the deadline and retrospective acceptance of applications affected by technical failure. [Paras 4]Composition scheme deadline extended to 30.9.2017; applications not filed by 16.8.2017 due to login failure shall be accepted, and email-submitted applications shall be treated as accepted with effect from 1.7.2017.Final Conclusion: The High Court directed administrative measures to remedy electronic filing failures by instituting designated District Information Officers and provision of contact addresses, allowed email reporting as an interim substitute for online filing with a mandate for expeditious resolution, protected affected taxpayers from coercive action provided they notified by email, and extended and ordered acceptance (including retrospective effect) of composition scheme applications otherwise prevented by the system failures. Issues: System malfunction leading to non-compliance with tax requirements, immediate corrective actions, extension of composition scheme deadline.In this judgment by the Rajasthan High Court, the court noted that the system was not functioning adequately, leading to non-compliance issues. The court directed that individuals facing login issues should inform the District Information Officer immediately via email. The court specified that the addresses of the District Head, State Officer, and Central Government Officer should be provided for communication purposes. Those reporting issues via email were assured of prompt resolution. Additionally, the court ordered a stay on coercive actions like penal interest, late fees, and prosecution against clients of the petitioners who reported issues by email. The composition scheme deadline was extended until 30.9.2017, allowing eligible assesses to apply. For those who missed the initial deadline, applications would be accepted, and if not falling under the composition scheme, they could send their applications via email for consideration from 1.7.2017. The case was listed for further proceedings on 5.10.2017.