Case Details: Oam Industries India (P.) Ltd. vs. Maharashtra Airport Development Company Ltd. [2026] 183 taxmann.com 400 (Bombay)
Judiciary and Counsel Details
- Anil L. Pansare & Nivedita P. Mehta, JJ.
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R.R. Shrivasatava, Adv. for the Petitioner.
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C.S. Samudra, Adv. for the Respondent.
Facts of the Case
The petitioner filed a writ petition challenging the recovery of interest on the delayed payment of GST under an agreement of lease. It was submitted that the respondent had failed to raise a GST invoice within the time limit prescribed under the CGST Act, and, as such, the petitioner could not have known the exact amount of GST payable. The petitioners had made payment under protest, which included both GST and interest on delayed payment, and sought a direction for refund of the interest component. The matter was accordingly placed before the High Court.
High Court Held
The High Court held that the responsibility to pay GST rested solely with the respondent, who was duty-bound to issue the invoice within thirty days under Section 31 of the CGST Act and the Maharashtra GST Act. The Court observed that the petitioners were under no obligation to pay GST without a proper invoice and that imposing the burden of interest on them was illegal and unsustainable in law. It was held that the respondent was liable to pay interest itself, and the amount of interest recovered from the petitioners was required to be refunded. The petition was allowed in favour of the petitioner under Section 50 read with Section 31 of the CGST Act.
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