2021 (10) TMI 255 - HC - GST

Determination of correct outstanding amount of GST - GST liability of petitioner alongwith interest which is due to be paid - HELD THAT - Let proof of payment of Rs. 10 lacs be placed on record along with an affidavit within two weeks. The correct outstanding amount and the interest payable thereon shall be determined on the next date of hearing. However in the meantime the undertaking given by Mr.Navneet through learned senior counsel for the petitioner is accepted by this Court and petitioner is held bound by the same - List on 24th January 2022.

Summary

Issues:
1. Determination of GST liability and payment schedule.
2. Discrepancy in the outstanding principal amount.
3. Verification of payment and submission of proof.

Analysis:
1. The High Court, in the present matter, observed the petitioner's GST liability to be Rs. 20.22 crores, comprising a principal amount of Rs. 17.26 crores and interest of Rs. 2.96 crores. The petitioner had already paid Rs. 15,68,70,000, with the remaining principal amount of Rs. 1,57,30,000 to be paid by 25th October, 2021. Additionally, interest of Rs. 3,78,80,747 was calculated in accordance with GST laws and notifications, to be paid in two equal instalments of Rs. 1,89,40,373 each by 21st November and December 2021, respectively. Failure to adhere to the timelines would empower the Respondents to attach and sell the mentioned immovable properties as per the order dated 03.03.2021.

2. The respondents' counsel highlighted a discrepancy, stating the actual outstanding principal amount as Rs. 2,00,15,367, and disputed the alleged non-payment of Rs. 10 lacs on 13.09.2021, as claimed by the petitioner's senior counsel. The Court directed the petitioner to provide proof of the Rs. 10 lacs payment within two weeks. The accurate outstanding amount and applicable interest were to be determined at the next hearing. Nonetheless, the Court accepted the undertaking given by the petitioner's representative and held the petitioner bound by it.

3. The Court scheduled the next hearing for 24th January, 2022, to further address the discrepancies in the outstanding amount, verify the payment of Rs. 10 lacs, and finalize the interest payable. The petitioner was instructed to submit proof of the disputed payment, and both parties were expected to present their arguments regarding the outstanding principal and interest amounts. The Court's decision on the matter would be based on the evidence and submissions provided during the proceedings.