2022 (4) TMI 50 - HC - GST

Recovery of Tax - Seeking a direction to permit payment of the tax due from the petitioner for the months of February 2021 and March 2021 in 20 equated monthly instalments - seeking direction to permit the submission of returns in the subsequent months without initiating any coercive steps - HELD THAT - It can be noticed that petitioner has no dispute on his liability for payment of tax for the months of February 2021 and March 2021. The financial difficulties faced by the petitioner due to Covid-19 pandemic is claimed to be the reason for seeking the benefit of payment of tax in instalments. Though section 80 of the Act confers power upon the Commissioner to extend the time for payment, the said benefit is limited for payments other than those due under self assessed returns. It is true that as far as the power of the Commissioner is concerned, there is a restriction on the power to grant instalments for payment of tax due. In cases of self-assessed returns, the Commissioner of GST does not have the power to permit payment of tax in instalments. In the present case, petitioner has not paid the tax for the period from February 2021 till date and hence he has already got the benefit of almost 12 months - the petitioner has already got the benefit of almost 12 months and respondents have agreed to accept the entire tax, if paid in full, immediately. In view of the aforesaid, a further grant of instalment is not warranted and the petitioner is bound to clear the liability without fail, immediately. The petitioner is bound to pay the tax for the month of February 2021 onwards, within a period of one month from the date of receipt of a copy of the judgment and if the tax due till date is received within the time directed, respondents shall accept the same and permit the petitioner to continue his registration under the Act - the writ petition is disposed of.

Summary

Issues:
1. Petitioner seeks direction for payment of tax in instalments for February and March 2021.
2. Financial constraints due to Covid-19 pandemic affecting tax payment.
3. Interpretation of Section 80 of the CGST Act regarding payment of tax in instalments.
4. Pending judgments in Writ Appeals regarding permission for instalment payments.
5. Dispute over the power of Commissioner to grant instalments for self-assessed returns.
6. Applicability of previous judgments allowing instalment payments.
7. Decision on granting further instalment facility in the present case.

Analysis:
1. The petitioner, a GST-registered dealer, requested permission to pay outstanding taxes for February and March 2021 in 20 monthly instalments due to financial difficulties arising from the Covid-19 pandemic and delayed payments from a project undertaken for the Kerala Water Authority.
2. The respondents argued against permitting instalments, citing Section 80 of the CGST Act, which restricts instalment payments for self-assessed taxes. They also highlighted pending judgments on similar issues in writ appeals.
3. The court acknowledged the petitioner's financial challenges but noted the limitation on the Commissioner's power to allow instalment payments for self-assessed returns under Section 80 of the Act.
4. While previous judgments were cited by the petitioner to support their request for instalments, the court emphasized that the Commissioner's authority to grant instalments is restricted in cases of self-assessed returns.
5. The court decided not to delve into the broader question of permitting instalments contrary to statutory provisions, as the petitioner had already delayed payment for almost 12 months and the respondents were willing to accept full immediate payment.
6. Consequently, the court directed the petitioner to clear the tax liability for February 2021 onwards within one month of receiving the judgment copy, with acceptance of the full amount leading to continued registration under the Act, thereby disposing of the writ petition.