2021 (1) TMI 297 - HC - GST

Direction to respondent to recalculate the due amount payable by the petitioner - HELD THAT - As the petitioner is seeking only enlargement of time to pay the admitted tax liability, and it is undisputed that the notice for payment of admitted liability is yet to be issued, it would be appropriate to dispose of this writ petition reserving liberty to the petitioner to make appropriate request with the authorities, who shall consider the same, in the light of the fact that the petitioner admits the liability strictly in accordance with law. Petition allowed.

Summary

Issues:
1. Relief sought through a Writ of Mandamus to prevent coercive action and recalculate the due amount.
2. Request for extension of one year to pay the due amount in phased manner.
3. Dispute regarding the amount due under GST for taxable supplies from June 2019 to January 2020.
4. Legal proceedings initiated under Section 70 of the Central Goods and Services Tax Act, 2017.
5. Argument on granting reasonable time for payment of admitted liability.
6. Respondent's stance on the ongoing proceedings and issuance of notice under Section 76 of the Act.
7. Disposal of the writ petition with liberty for petitioner to request time for payment.

Analysis:
The petitioner filed a petition seeking a Writ of Mandamus to prevent coercive action by the respondent and to recalculate the due amount payable, along with a request for a one-year extension to pay the due amount in phased manner. The petitioner admitted liability for a sum of ?1,67,17,995/- towards GST charged for taxable supplies from June 2019 to January 2020. The respondent issued a summons under Section 70 of the CGST Act, prompting the petitioner to file the writ petition. The petitioner's counsel assured that the liability would be paid if a reasonable time is granted. On the other hand, the respondent's counsel argued that the proceedings related to the amount due were not concluded, and issuance of a notice under Section 76 of the Act would be necessary for recovery. The court decided to dispose of the writ petition, allowing the petitioner to request an extension for payment once the notice for the admitted liability is issued, emphasizing that the petitioner must adhere to legal requirements when seeking accommodation for payment.