GST Interest Payment Dispute Resolved: Petitioner Granted 3-Month Installment Plan to Settle Rs. 53,26,074 Outstanding Dues

HC allowed partial relief in GST interest payment dispute. Petitioner challenged demand for Rs. 53,26,074/- and was granted 3-month installment plan to settle outstanding dues. Court ordered specific payment schedules by 21.12.2023, 21.01.2024, and 21.02.2024, with warning of potential recovery proceedings if payments are missed. Writ petition disposed of without costs.

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Issues:
The writ petition challenges the impugned order dated 06.10.2023 passed by the respondent regarding the payment of GST interest for the years 2017-2018 to 2021-2022.

Details of the Judgment:

Issue 1: Challenge to the demand for payment of GST interest
The petitioner, engaged in servicing financial institutions, faced delays in GST payment due to technical glitches. The respondent issued a notice demanding payment of Rs. 53,26,074/- for non-payment of GST within 2 days. The petitioner had only paid Rs. 11,41,892/- till date. The petitioner argued that the 2-day time period was inadequate and requested the court to consider the circumstances and allow more time for payment.

Issue 2: Arguments on the time period for payment
The respondent's counsel opposed the petitioner's request for more time, stating that a month had already passed, and the requested time was excessive. However, she acknowledged the need for the court to set an appropriate time limit for payment considering the situation.

Court's Decision:
After hearing both parties and reviewing the case materials, the court noted the petitioner's inability to pay the demanded amount within 2 days. The court deemed 3 months as a more reasonable time frame for payment. The court ordered the petitioner to pay the balance amount in three installments by specific dates: Rs. 13,94,000/- by 21.12.2023, Rs. 13,94,000/- by 21.01.2024, and Rs. 13,96,182/- by 21.02.2024. The court warned that failure to pay on these dates would allow the respondent to initiate recovery proceedings. The writ petition was disposed of with no costs, and the related miscellaneous petition was closed.

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