Technical GST Return Filing Challenges Resolved: Fair Hearing Granted, Interest Charges Waived During System Glitch Period

The SC examined a GST return filing dispute involving technical glitches. The court disposed of the petition, directing a fair hearing for the petitioner regarding disputed interest and late payment charges. The respondents acknowledged no charges would apply during the technical glitch period. The communication was deemed a consultation notice, with potential for a future show cause notice if unauthorized delays were identified.

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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.

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