Facts of the Case

The petitioner, M/s Jinendra Enterprises, filed a writ petition before the Rajasthan High Court contending that the delay in obtaining GST registration was not attributable to any fault on its part but was caused by a technical glitch on the side of the GST Department. Owing to the delay, the petitioner was compelled to pay late fees to complete the GST registration process. Thereafter, the GST registration was granted. The petitioner submitted several representations requesting refund or adjustment of the late fee on the ground that the delay had occurred solely due to the respondent department’s default. However, no specific decision was taken on those representations.

 Issues Involved

  1. Whether the petitioner could be made liable to pay late fees when the delay in GST registration was caused by a technical glitch attributable to the GST Department.
  2. Whether the GST authorities were required to examine the petitioner's claim for refund or adjustment of the late fee deposited due to departmental fault.
  3. Whether the High Court should directly grant relief or direct the competent authority to decide the pending representations.

 Petitioner’s Arguments

  • The petitioner argued that the delay in obtaining GST registration occurred entirely because of technical issues in the GST system and not due to any negligence or default on its part.
  • Since GST registration could not be completed without payment of the late fee, the petitioner was compelled to deposit the amount.
  • Several representations were submitted before the GST authorities highlighting that the delay was attributable to the department.
  • The petitioner contended that the late fee collected under such circumstances was illegal and sought refund or appropriate credit of the amount deposited.

 Respondent’s Arguments

  • No specific submissions on behalf of the respondents were recorded in the order.
  • The matter primarily revolved around the petitioner's grievance that the competent GST authority had not taken any decision on the representations already submitted.

 Court Order / Findings

The Rajasthan High Court observed that the grievance raised by the petitioner had already been brought before the competent GST authority through various representations, but no specific order had been passed.

The Court further noted that the controversy related to an alleged technical glitch resulting in delayed GST registration and did not involve interpretation of any statutory provision. Therefore, instead of keeping the writ petition pending, the Court directed Respondent No. 3 (State Commissioner, GST) to examine the petitioner's complaint and pass an appropriate decision within six weeks from the date of receipt of the Court's order.

The Court also clarified that if the petitioner remained dissatisfied after the authority's decision, it would be at liberty to pursue any other remedy available under law.

Accordingly, the writ petition was disposed of with the above directions.

 Important Clarification

  • Delay in GST registration allegedly caused by a technical glitch should first be examined by the competent GST authority.
  • Where representations seeking refund or adjustment of late fee remain undecided, the High Court may direct the authority to consider and dispose of the grievance within a specified period.
  • The Court did not decide the petitioner's entitlement to refund on merits but required the competent authority to take an appropriate decision.
  • Liberty was reserved for the petitioner to pursue further legal remedies if the grievance remained unresolved.

 Section Involved

  • Provisions relating to GST Registration
  • Provisions relating to Late Fee under the GST Law
  • Article 226 of the Constitution of India (Writ Jurisdiction)

Link to Download the Order

https://www.mytaxexpert.co.in/uploads/1785318573_2206compressed.pdf

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