Dept. Can’t Issue Notice Directing Assessee to Pay Interest Within 2 Days for Non-payment of GST in Time | HC

Case Details: Everyday Banking Solutions v. Assistant Commissioner (ST) - [2023] 157 taxmann.com 151 (Madras)

Judiciary and Counsel Details

• • Krishnan Ramasamy, J.

Facts of the Case

The assessee was engaged in the business of rendering service to financial institutions. Due to some technical glitch and practical difficulties, there was delay in payment of GST. The notice was issued by GST department directing assessee to pay interest on non-payment of GST in time during said period within 2 days.

It filed writ petition against the notice and contended that the provision of 2 days’ time period was not sufficient for the petitioner and requested to provide sufficient time for payment of amount demanded by the department towards interest.

High Court Held

The Honorable High Court noted that the time period of 2 days was not sufficient to make payment of demanded amount by assessee as all of a sudden GST department had issued notice demanding said interest. Therefore, the Court granted 3 months’ time for payment of amount demanded and if assessee failed to make payment of amount within 3 months, the department was granted liberty to initiate recovery proceedings.