On Time Services Having At Office Vs Union of India and 3 others (Allahabad High Court)
Allahabad High Court has partially set aside a GST demand order against On Time Services Having At Office, directing the tax authorities to reconsider the petitioner’s request for adjusting CGST and SGST liabilities against its available IGST balance. The case arose from a demand notice issued by the Deputy Commissioner, State Tax, Prayagraj, for the financial year 2018-19, seeking tax payment of ₹2,77,396 along with a penalty of ₹27,738. The petitioner responded to the show cause notice under Section 73 of the GST Act, arguing that the CGST and SGST dues should be offset against its IGST credit of ₹16,75,668. However, the assessing authority proceeded with the demand without addressing this request.
The court acknowledged that while the tax determination itself was not in question, the petitioner’s plea for IGST adjustment had not been considered, which could impact interest and penalty calculations under Section 128A of the GST Act. Consequently, the court remanded the case to the tax authority for reconsideration of this specific issue. The petitioner has been directed to appear before the authority on February 5, 2025, for a fresh hearing, where a revised decision will be made. If the IGST adjustment is accepted, the interest and penalty implications will be reassessed accordingly.
