Demand for Interest on Delayed Payments During Period of GSTIN Cancellation Was Inequitable & Liable to Be Set Aside | HC
- Blog|News|GST & Customs|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 6 January, 2024
Latest from Taxmann
Case Details: Hilton Garden INN v. Commissioner of Kerala Goods & Service tax - [2024] 158 taxmann.com 93 (Kerala)
Judiciary and Counsel Details
-
- Dinesh Kumar Singh, J.
- Anil D. Nair, Telma Raju & Aaditya Nair, Advs. for the Petitioner.
- Sreelal N. Warrier for the Respondent.
Facts of the Case
The petitioner remitted the GST for the month of July, 2017 on 21-8-2017 but on account of technical problem in the GST network, the tax remitted by the petitioner could not get reflected in the cash ledger appearing in the return module and the GSTIN was cancelled without notice.
It filed application for restoration of GSTIN and the same was restored after following interim order by Kerala High court. After restoration, portal remained unavailable so there was further delay in filing of returns and payment of taxes. The department levied demand for interest on delayed tax payment. It filed writ petition against the demand of interest and contended that delay was solely due to technical glitch and unjustifiable cancellation of their GSTIN.
High Court Held
The Honorable High Court noted that the petitioner’s GSTIN was cancelled without notice and it had to approach High Court for restoration of GSTIN. The Court also recognized petitioner’s hardships caused by technical glitch and wrongful cancellation of GSTIN. Therefore, the Court held that the demand for interest on delayed payment was inequitable and liable to be set aside. However, the Court also held that the petitioner would be liable for interest on any delay in remitting tax after 20 days from restoration of GSTIN.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
