All INDIA Federation Of Tax Practitioners And Anr vs. The Union Of INDIA And 3 Ors
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The petitioners, the All India Federation of Tax Practitioners and the Tax Bar Association, Guwahati, filed a Public Interest Litigation before the Gauhati High Court. They contended that the Goods and Services Tax (GST) portal system was experiencing significant technical glitches, preventing taxpayers from filing their GSTR-9 and GSTR-9C returns by the due date, which was January 31, 2020. The petitioners highlighted that representations made to resolve these issues were not being addressed, leading to potential penalties for late filing despite the system's failures. They argued that these technical issues were causing revenue loss to the State and penalizing honest taxpayers. The revenue, represented by the Assistant Solicitor General, suggested that a fresh representation be filed, assuring a decision at the highest level within a week.
Held
The Court noted that the due date for filing returns had already been extended to February 7, 2020, rendering adjudication on the immediate prayer unnecessary. The Court disposed of the petition by binding the Union of India to take a decision on the representation to be filed by the petitioners within one week of its filing. Furthermore, the Court directed the respondent to address the issue of extending the time for filing GST Returns by 30 days specifically for the States of Assam, Nagaland, Mizoram, and Arunachal Pradesh, considering the peculiar conditions prevalent in these states. This extension was to be considered as part of the representation. The Court did not make any specific findings on the merits of the technical glitches or the applicability of specific sections of the GST Act in relation to penalties, as the matter was resolved through a procedural assurance and a direction for future consideration.
Key Issues
1. Whether the technical glitches in the GST portal system warrant an extension of the due date for filing GSTR-9 and GSTR-9C returns and/or allow filing without late fees and penalties, as per the provisions of the GST Act and Rules? Petitioner's Arguments: The petitioners argued that the non-functioning of the GST portal, including on the last date for filing GSTR-9 and 9C returns (January 31, 2020), constituted a significant impediment for taxpayers. They contended that despite raising grievances and issuing tickets, issues remained unresolved. The defective system, they argued, prevented timely filing, yet taxpayers faced penalties for late submission. They relied on the principle that taxpayers should not be penalized for system failures beyond their control. They sought a writ of Mandamus to extend the filing date or allow submission without penalties and to ensure the portal is glitch-free before imposing penalties. Revenue's Arguments: The respondent (Union of India) did not present detailed arguments on the merits of the technical issues but suggested that the petitioners file a fresh representation. They assured that a decision on this representation would be taken at the highest level within a week of its filing.
Sections Cited
None expressly discussed in detail, but implicitly related to filing deadlines and penalties under the GST regime.
AI-generated summary — verify with the full judgment below
Page No.# 1/4 GAHC010024012020
THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) Case No. : PIL 15/2020 1:ALL INDIA FEDERATION OF TAX PRACTITIONERS AND ANR REGD OFFICE AT 215, REWA CHAMBERS 31, NEW MARINE LINES, MUMBAI- 400020 AND ITS EASTERN OFFICE AT KOLKATA, WEST BENGAL COVERING ALL THE NORTH EASTERN STATES AND REP. BY SRI PRITAM BARUAH, VICE CHAIRMAN (EAST ZONE) OF THE FEDERATION 2: TAX BAR ASSOCIATION GUWAHATI SHREE RAM MARKET 2ND FLOOR CHATRIBARI GUWAHATI- 781001 REP BY SRI AMIT PAREEK SECRETARY OF THE ASSOCIATIO VERSUS 1:THE UNION OF INDIA AND 3 ORS REP. BY THE SECRETARY TO THE GOVT OF INDIA, MIN OF FINANCE, DEPTT OF REVENUE, NEW DELHI 2:GST COUNCIL 5TH FLOOR TOWER-II JEEVAN BHARTI BUILDING JANAPATH ROAD CONNAUGHT PLACE NEW DELHI- 110001 3:GOODS AND SERVICE TAX NETWORK EAST WING WORLD MARK-1
Page No.# 2/4 AEROCITY NEW DELHI 4:THE UNDER SECRETARY TO THE GOVT OF INDIA MIN OF FINANCE DEPTT OF REVENUE NORTH BLOCK NEW DELHI- 11000 Counsel for petitioners : Dr. Ashok Saraf, Senior Advocate
Mr. S Chetia
Counsel for respondents : Mr. SC Keyal, Assistant Solicitor General of India
BEFORE HON’BLE THE CHIEF JUSTICE MR. AJAI LAMBA HON’BLE MR. JUSTICE SOUMITRA SAIKIA
2020 (Ajai Lamba, C.J.) All India Federation of Tax Practitioners, Registered Office at 215, Rewa Chambers, 31, New Marine Lines, Mumbai 400020 and its eastern office at Kolkata, West Bengal covering all the North Eastern States and represented by Shri Pritam Baruah, Vice Chairman (East Zone) of the Federation AND Tax Bar Association, Guwahati, Shree Ram Market, 2nd Floor, Chatribari, Guwahati– 781001, represented by Shri Amit Pareek, Secretary of the Association, have preferred this petition in Public Interest. Dr. Saraf, learned Senior counsel has addressed the Court. It has been projected by Dr. Saraf that non-functioning of GST portal system for a couple of days including on 31.1.2020 which happened to be the last date for submitting GSTR-9 and 9C returns is the cause of filing the petition. To buttress the argument, learned senior counsel has pointed out that there are so many technical glitches in the computer system that tax payers are not able to file their returns in time. On grievance being raised, a ticket is issued, which however, without resolution expires. Representations are made which also find reflected on the GST portal, however, no decision in regard to representations is taken.
Page No.# 3/4 Dr. Saraf has impressed on the Court that such glitches in the system are causing immense revenue loss to the State. The traders have all intentions of filing returns and paying taxes however, they are unable to pay taxes on time because of such technical issues. It has been projected that the returns cannot be filed on time because of defective system, however, the tax payers are penalized for late filing. The tax payers who access the system are informed by the portal that a number of other persons are in the process and therefore, the tax payers are required to wait.
Mr. Keyal contends that let a fresh representation be filed. Mr. Keyal has assured the Court that a decision on the representation would be taken at the highest level within a week of its filing.
Dr. Saraf states that detailed representation would be filed online and a copy thereof would be handed over to Mr. Keyal by tomorrow evening.
So far as the petition in particular is concerned, the following prayer has been made; “In the premises aforesaid, it is most respectfully prayed that Your Lordships may graciously be pleased to issue a rule directing the respondents to show cause as to why a writ in the nature of Mandamus and/or any other appropriate writ of like nature should not be issued directing and commanding the Respondents to extend the date of filing of the GST Annual Return and GST Audit Form (Form 9 and Form 9C) for a reasonable time and/or allow the petitioner to submit the GST Annual Return and GST Audit Form (Form 9 and Form 9C) without payment of late fee and penalty and also issue a direction to make the GST portal system workable and technical glitch free before imposition of any penalty and on hearing cause and causes as may shown and after hearing the parties, be pleased to make the Rule absolute and/or pass such order/orders and or further order/orders as may deem fit and proper. -AND- In the interim, Your Lordship may further be pleased to extend the date of filing of the GST Annual Return and GST Audit Form (Form 9 and Form 9C)
Page No.# 4/4 for a reasonable time and/or allow the petitioner to submit the GST Annual Return and GST Audit Form (Form 9 and Form 9C) without payment of late fee and penalty and/or pass such interim order(s) as Your Lordship may deem fit and proper.”
It is the conceded position that the date for filing return has been extended till 7.2.2020. In such circumstances, no adjudication is required on the petition.
This petition is disposed of however, binding the respondent Union of India to take a decision on the representation to be filed on behalf of the petitioners, within one week of its filing. The respondent would also address the issue of extending the time for 30 days, so far as filing of GST Returns in the State of Assam, Nagaland, Mizoram and Arunachal Pradesh is concerned, in view of peculiar conditions prevalent in these States. As per Dr. Saraf, this prayer would be made in the representation. Let copies of the order be furnished to both the sides under signatures of the Court Master.
JUDGE CHIEF JUSTICE Comparing Assistant
Reproduced from the public record of the Gauhati High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.