9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (3) TMI 336 - HC - GSTRecovery of amounts of tax / GST collected by its vendors (members of the petitioner association), but not deposited - HELD THAT - This is not a matter which warrants interference or attention of this Court as the liability of the deductors to remit the tax deducted by it to the coffers of the Department, is absolute. In fact, failure to do so would render them liable to interest and penal action. The members of the petitoner association are at liberty to approach NLC seeking its indulgence for additional time to remit tax, not/short deducted and it is for NLC to consider the same. Petition dismissed.
Issues Involved:
Challenge to communication by Neyveli Lignite Corporation (NLC) regarding recovery of tax from vendors who did not deposit it. Analysis: The judgment by Honourable Dr. Justice Anita Sumanth of the Madras High Court dealt with a challenge to a communication dated 06.02.2021 issued by Neyveli Lignite Corporation (NLC). The communication called upon the NLC's vendors, who are members of the petitioner association, to recover tax amounts that were collected but not deposited. The consideration paid by the petitioners to NLC included GST, and the liability for GST payment rested with the members of the petitioner association. It was acknowledged that GST deductions were not fully or partly remitted in many cases. Consequently, NLC faced a reversal of Input Tax Credit and had to remit the demand raised. The court observed that the impugned communication aimed to enforce the contractual obligations between NLC and its vendors, emphasizing the vendors' liability to remit the tax deducted to the tax department. The judgment highlighted that the vendors' failure to remit the deducted tax would make them liable for interest and penal action. The court noted that the vendors could seek NLC's indulgence for additional time to remit the tax, whether not remitted or short deducted. However, the court concluded that this matter did not require the court's intervention, as the liability of deductors to remit the tax to the tax department was absolute. The judgment dismissed the writ petition, stating that apart from the mentioned observation, no further issues remained for consideration. Consequently, the connected Miscellaneous Petitions were also dismissed, and no costs were awarded in the case.
|
