GST Interest Demand Sustained with Flexible Payment Schedule Allowing Three Installments Over Three Months

HC upheld GST interest demand but granted petitioner a 3-month extended payment period in three instalments. First instalment of Rs. 80,000/- due by 20.12.2023, second Rs. 80,000/- by 20.01.2024, final Rs. 93,580/- by 20.02.2024. Failure to comply would trigger recovery proceedings. Writ petition disposed without costs.

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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.

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