Rajasthan Tax Consultants Association vs. Union Of INDIA
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The Rajasthan Tax Consultants Association filed an application seeking to recall an order dated August 1, 2018. The Association's members' clients had faced technical glitches on the GST portal, preventing them from filing documents. The Court had previously passed an order on September 20, 2017, directing that no coercive action, including penalties, interest, late fees, or prosecution, be taken against these clients. The respondents argued that a Government of India circular dated April 3, 2018, established an IT Technical Grievance Redressal Mechanism, allowing taxpayers to report technical issues. The applicant contended that this circular was placed before the Court when the August 1, 2018 order was passed, which was based on equitable grounds.
Held
The Court dismissed the application for recalling the order dated August 1, 2018. The Court reasoned that no ground was made out for recalling the order as it had been passed on equitable grounds. A recalling application, the Court stated, would only lie if a fact, which was not within the applicant's knowledge despite due diligence, was brought to the Court's notice. In this case, all relevant documents, including the fact of technical glitches on the GST portal and the protective order for the clients of the Rajasthan Tax Consultants Association, were before the Court at the time the impugned order was passed. Therefore, the Court found it was not a fit case for recalling the order.
Key Issues
1. Whether the Court erred in passing the order dated August 1, 2018, in light of the earlier order dated September 20, 2017, which prohibited coercive action against the clients of the petitioner's members due to technical glitches on the GST portal? Petitioner's Arguments: The petitioner argued that the order dated August 1, 2018, was passed on equitable grounds and that the circular dated April 3, 2018, which provided a grievance redressal mechanism for technical issues, was already before the Court at that time. They contended that the Court should recall the order as it was passed despite the existence of the circular and the earlier protective order. Respondents' Arguments: The respondents contended that the Court had erred in passing the impugned order of August 1, 2018, given the earlier order of September 20, 2017. They highlighted the existence of the circular dated April 3, 2018, which set up a mechanism for addressing technical grievances, implying that the August 1, 2018 order might have overlooked this recourse.
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
Order 20/04/2024
Applicant has filed this application seeking recalling of order dated 01.08.2018. [2024:RJ-JP:18350-DB] (2 of 3) [WMAP-199/2019]
It is contended by Mr. R.D. Rastogi, learned Additional Solicitor General that the Court has erred in passing the impugned order in light of the earlier order dated 20.09.2017 whereby the Court has directed that no coercive action including penalty interest, late fees and prosecution be taken against any of the client of the petitioners members who are referred in the petition.
It is further contended that a circular has been issued by the Government of India on 03.04.2018 by which IT Technical Grievance Redressal Mechanism has been set-up and a tax payer is entitled to apply giving details as to when he tried to file his documents and as to when he could not file it due to technical glitches on GST Portal.
Mr. Sanjay Jhanwar, learned Senior Advocate appearing for Rajasthan Tax Consultants Association contends that the initial order was passed by the Court on 20.09.2017. Thereafter, the order which is sought to be recalled was passed on 01.08.2018. The order was passed on equitable grounds and the circular dated 03.04.2018, which is now annexed in the additional certificate, was already placed before the Court.
We have considered the contentions.
Be that as it may, the Court has passed the impugned order on 01.08.2018. No ground is made out for recalling of the order as the same has been passed on equitable grounds and a recalling application would lie only if some fact which after exercise of due diligence was not within the knowledge of the applicant, is brought to the notice of the Court.
Since the entire documents were there before the Court at the time of the passing of the impugned order, we do not find it a
[2024:RJ-JP:18350-DB] (3 of 3) [WMAP-199/2019] fit case for recalling of the order dated 01.08.2018 as admittedly there were technical glitches on GST Portal due to which certain documents/returns could not be filed and the order has been passed protecting the clients of the Rajasthan Tax Consultants Association.
The application for recalling the order is accordingly, dismissed. (SHUBHA MEHTA),J (PANKAJ BHANDARI),J DAKSH/45
Reproduced from the public record of the Rajasthan High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.