2017 (4) TMI 1255 - HC - VAT and Sales Tax

Extension of time sought for payment of arrear of tax - Held that - this Court is of the view that the petitioner cannot seek indulgence of this Court every time to make the payment in installments by stating one reason or other. Once the tax liability is fixed and also admitted by the petitioner, it is their bounden duty to pay without dragging the matter - this writ petition is disposed of, with a direction to the petitioner, to pay the balance of arrears with interest in four monthly installments - petition disposed off.

Summary

Issues:
Recovery notice challenge, seeking time for payment in installments.

Analysis:
The petitioner challenged a recovery notice dated 19.04.2017 seeking a directive for time to pay arrears with interest. The petitioner acknowledged the arrears of ?32,63,17,472.00 and requested to pay in installments, citing a previous court order allowing installment payments. During the hearing, the petitioner had paid a substantial amount towards the arrears. The government pleader confirmed the outstanding balance and interest due. The petitioner expressed willingness to pay the remaining amount in installments if given sufficient time.

The court noted that the petitioner did not dispute the tax liability but only sought time for payment. Acknowledging the partial payment made by the petitioner, the court emphasized that seeking installment payments repeatedly was not acceptable once the tax liability was admitted. Referring to a previous indulgence granted in 2015, the court directed the petitioner to pay the remaining arrears with interest in four monthly installments starting from 15.05.2017. The court clarified that no further leniency would be granted for future arrears, emphasizing the petitioner's duty to promptly pay taxes. The judgment concluded without imposing any costs, and the related miscellaneous petition was closed.