2020 (10) TMI 761 - HC - GST

Permission to pay the arrears of tax in instalments along with interest thereon - HELD THAT - This Court in PAZHAYIDOM FOOD VENTURES (P) LTD. VERSUS SUPERINTENDENT COMMERCIAL TAXES (CGST) I CIRCLE, PALA 2020 (7) TMI 737 - KERALA HIGH COURT , in similar circumstances, directed the respondent tax authority to accept the belated returns and permitted the petitioner therein to discharge the balance tax liability in equal monthly instalments. Since the petitioner is not disputing its liability, and wishes to put a quietus to the matter, it is deemed appropriate to direct the respondent to accept the belated return filed by the petitioner for the period from February, 2020 to April, 2020, without insisting on payment of the admitted tax declared therein - petition disposed off.

Summary

Issues:
1. Petitioner seeking permission to pay arrears of tax in instalments due to financial difficulties during Covid pandemic.
2. Interpretation of provisions of the Act regarding payment of admitted tax in instalments.

Analysis:
1. The petitioner, a private limited company in automobile sales, filed GSTR-1 returns for Feb-May 2020 but faced financial constraints due to Covid pandemic. The petitioner sought permission to pay arrears of tax without contesting, citing inability to make lump sum payment. The respondent, citing statutory provisions, opposed allowing instalment payments.

2. The Court noted that the petitioner accepted the tax liability without dispute and sought instalment facility due to pandemic-induced financial challenges. Referring to a previous case, the Court directed the respondent to accept belated returns for Feb-Apr 2020 without immediate tax payment. The petitioner was allowed to pay the tax liability, including interest and late fees, in monthly instalments from Nov 15, 2020, to Aug 15, 2021. However, failure to pay a single instalment would nullify the benefit of the judgment, enabling the respondent to initiate recovery proceedings lawfully.