Delay in GST Response: Delhi HC Imposes Rs. 1 Lakh Cost on Exide Industries, Remands Matter for Fresh Hearing

The Delhi High Court imposed ₹1 lakh costs on Exide Industries for delayed response to GST notices but remanded the matter for fresh hearing. Justice Yashwant Varma noted the company's 11-month delay in replying to show cause notices hampered tax administration, warranting cost imposition. However, the court allowed reconsideration on merits since the original order didn't properly evaluate Exide's subsequent submissions. The case involves ₹28 crore GST demand on battery warranty claims treatment. This balanced approach penalizes procedural lapses while ensuring substantive justice. The ruling reminds large corporates to prioritize tax compliance timelines, especially in complex GST matters. Exide must now pay the costs and submit all documents within four weeks for fresh adjudication, with the department directed to decide within 90 days thereafter.