Tax Dispute Resolved: Seigniorage Fees Clarified with Mandatory Three-Month Timeline for Rectification Application Submission

HC addressed a tax dispute involving seigniorage fees and outward supply tax. After hearing arguments, the court directed respondents to dispose of a pending rectification application within three months, providing a clear timeline for resolution without imposing costs on either party.

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Issues:
1. Alleged non-payment of tax due of seigniorage fees under RCM
2. Alleged short payment of taxes on outward supply
3. Delay in disposal of rectification application under Section 161 of GST statutes

Analysis:
The High Court judgment pertains to an assessment order issued regarding the alleged non-payment of tax due of seigniorage fees under RCM and alleged short payment of taxes on outward supply. The petitioner filed a rectification application under Section 161 of GST statutes, claiming that the application was not disposed of within the stipulated six-month period. The writ petition was filed seeking the disposal of the rectification application within a specific timeframe.

During the proceedings, the Government Advocate representing the respondent accepted notice and stated that if a reasonable time limit is fixed, the rectification petition would be considered and disposed of in accordance with the law. Consequently, the High Court disposed of the petition by directing the respondent to consider and dispose of the rectification application within three months from the date of receipt of the court order, specifically concerning the assessment period of 2020-21. The judgment did not impose any costs on either party.

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