M/S.Unitac Energy Solutions (INDIA) PVT LTD vs. The Assistant Commissioner (St) (Fac)

Facts

The petitioner, Unitac Energy Solutions (India) Pvt. Ltd., filed a writ petition seeking a mandamus directing the Commissioner (second respondent) to expeditiously dispose of its application dated May 23, 2024. The petitioner had suffered adverse assessment orders for the assessment years 2017-2018, 2018-2019, 2020-2021, and 2021-2022. It claimed to have discharged the entire tax liability and a portion of the interest, amounting to Rs. 9,00,000 out of Rs. 13,00,000. The petitioner sought time to discharge the remaining interest liability due to financial difficulties and cited a recommendation from the 53rd GST Council Meeting regarding waiver of interest and penalties for certain periods, provided the full tax amount is paid by March 31, 2025. The respondents are the Assistant Commissioner (ST) and the Commissioner.

Held

The Court allowed the writ petition by directing the second respondent, the Commissioner, to dispose of the petitioner's application dated May 23, 2024, filed under Section 80 of the GST Act, within a period of 60 days from the date of receipt of a copy of the order. This direction was given in light of the recommendation made in the 53rd GST Council Meeting held on June 22, 2024, and is subject to a notification being issued to that effect. The Court also directed the respondents to keep all recovery proceedings in abeyance for a period of 60 days from the date of receipt of a copy of the order. If a notification is issued pursuant to the GST Council's recommendation, suitable orders are to be passed. If no notification is issued, the petitioner's application is to be considered and disposed of suitably. The Court found merit in the petitioner's plea for expeditious disposal, considering the pending application and the potential impact of the GST Council's recommendation. The ratio decidendi is that High Courts can direct expeditious disposal of applications pending before GST authorities, especially when there are recommendations from the GST Council that could impact the liability.

Key Issues

1. Whether the Court should direct the second respondent to dispose of the petitioner's application dated May 23, 2024, filed under Section 80 of the GST enactments, expeditiously? Petitioner's arguments: The petitioner argued that it has discharged its tax liability and a part of the interest, and due to financial constraints, it requires time to pay the remaining interest. It relied on a recommendation from the 53rd GST Council Meeting held on June 22, 2024, suggesting waiver of interest and penalties for demands raised under Section 73 of the GST Act, 2017, for assessment years 2017-18 to 2019-20, if the full tax amount is paid by March 31, 2025. The petitioner also referred to a previous decision of this Court in M/s. Eicher Motors Limited Vs. The Superintendent of GST and Central Excise. The petitioner contended that if the GST Council's recommendation is accepted and notified, the interest for 2017-2018 and 2018-2019 would be dropped, reducing its balance interest liability to Rs. 10,00,000. Revenue's arguments: The judgment records no specific arguments from the revenue or the State (respondents 1 and 2).