High Court Rules Department Cannot Mandate Assessee to Pay GST Interest in 48 Hours

• Background of Writ Petition:

- The writ petition challenges an order dated 6-10-2023 by the respondent.

• Representation in Court:

- Ms. E. Ranganayaki, Additional Government Pleader, represents the respondent.

- Both parties consent to disposing of the main writ petition at the admission stage.

• Petitioner's Argument:

- The petitioner, in the business of serving financial institutions, faced GST payment delays.

- A sudden notice from the respondent demanded Rs. 9,25,417/- interest within 2 days.

- The petitioner paid only Rs. 2,69,877/- till date.

• Petitioner's Request:

- Due to the abrupt notice, the petitioner seeks more time for payment.

- While initially seeking broader relief, the petitioner now requests sufficient time.

• Respondent's Position:

- The respondent argues that one month has already passed, and the petitioner's requested time is excessive.

- Despite reluctance, the respondent suggests an appropriate time limit.

• Court's Deliberation:

- After hearing both sides and reviewing the records, the Court notes the petitioner's financial constraints.

• Court's Decision:

- The Court deems the 2-day period insufficient for payment.

- Grants the petitioner 3 months for payment with specified instalments.

- Instalment Plan:

- On or before 20-11-2023: Rs. 2,10,000/-

- On or before 20-12-2023: Rs. 2,10,000/-

- On or before 20-1-2024: Rs. 2,35,540/-

• Conditions and Consequences:

- Failure to meet payment deadlines grants the respondent liberty to initiate recovery proceedings.

• Conclusion of Writ Petition:

- The writ petition is disposed of with no costs.

- The connected miscellaneous petition is also closed. Everyday Banking Solutions Vs. Assistant Commissioner (ST)