M/S Surat Dreams And Anr vs. The Union Of INDIA And Ors

Held

The Court noted that the registration as a casual taxpayer had been granted to the petitioner, and returns had been filed on February 28, 2019. To this extent, the petitioner's relief had been granted, and there was no dispute. Regarding the petitioner's concern that the department might impose penalties due to the delay, the Court observed that there was no order on record confirming such an attempt by the respondents, nor had any proceeding been initiated in this regard. In these admitted circumstances, the Court did not deem it necessary to express an opinion on the issue of potential penalties at that stage. However, the Court preserved the liberty for the petitioner to contest any such attempt by the concerned department, should any be initiated in the future. The writ petition was disposed of with these observations and liberty.

Facts

The petitioners, M/s Surat Dreams and its partner Vimal Hasmukhlal Gandhi, filed a writ petition seeking several reliefs. These included the issuance of a final Certificate of Registration (FORM GST REG-06), activation of and access to the Common GST Portal with user ID and password, and permission to utilize input tax credit of Rs. 26,44,874/- for an exhibition held in December 2017. They also sought to pay their Integrated Goods and Services Tax liability of Rs. 47,72,700/- by utilizing this credit and advance tax of Rs. 2,82,916/-, paying the balance of Rs. 18,44,910/- without interest and penalty. The petition also sought to restrain respondents from demanding interest, late fee, penalty, or subjecting them to punishment for delayed GST returns or tax payment due to no fault of their own. Counter affidavits were filed by the respondents, acknowledging delay but attributing some to the petitioner. The court was informed that registration as a casual taxpayer had been granted and returns filed on February 28, 2019.

Key Issues

1. Whether the petitioners are entitled to the issuance of a final Certificate of Registration (FORM GST REG-06) and access to the Common GST Portal with user ID and password? 2. Whether the petitioners can utilize their input tax credit of Rs. 26,44,874/- and advance tax of Rs. 2,82,916/- to offset their IGST liability of Rs. 47,72,700/-, paying the balance of Rs. 18,44,910/- without interest and penalty? 3. Whether the respondents are restrained from imposing interest, late fee, penalty, or other punishments on the petitioners for delayed GST returns and tax payments, given the alleged departmental delay? Petitioner's Arguments: The petitioner argued that the delay in registration and subsequent filing of returns was solely due to the lapses of the concerned departments, and therefore, they should not be subjected to any penalty, interest, or late fees. They contended that the delay was not on account of any fault on their part. Revenue's Arguments: The respondents, in their counter affidavits, acknowledged the delay but attributed a part of it to the petitioner. They did not explicitly argue against the utilization of input tax credit or the claim for waiver of interest and penalties in the provided text, but their counter affidavits indicated a partial blame on the petitioner for the delay.