2024 (6) TMI 831 - HC - GST

Validity of bank attachment notice - overdue interest liability - tax liability was discharged belatedly, the petitioner became liable to pay interest thereon - HELD THAT - The admitted position is that the tax liability pertaining to the relevant periods was discharged by the petitioner, albeit belatedly. The petitioner asserts that a sum of about Rs.7.20 lakhs was paid towards discharge of interest liability leaving a balance of about Rs.68 lakhs. By taking into account that the tax liability was discharged and the petitioner also paid about Rs.7.20 lakhs towards interest liability, it is just and appropriate that conditions be imposed subject to which the petitioner is permitted to pay the interest liability in installments. The petitioner shall pay a sum of Rs.10,00,000/- towards outstanding interest liability on or before 15.04.2024. Subject to and upon receipt of this sum by the first respondent, the impugned bank attachment and garnishee notices issued for recovery of such interest liability shall stand withdrawn - petitioner shall pay the remaining outstanding interest liability in 11 equal monthly installments on or before the 15th of every succeeding month. In case of default, it is open to the first respondent to issue fresh bank attachment or garnishee orders or take any other measures for recovery of dues in accordance with law. Petition disposed off.

Summary

The High Court of Madras considered a writ petition challenging a bank attachment notice related to GST interest liability. The petitioner, a registered GST person, had their registration cancelled due to non-filing of returns but later reinstated after paying tax dues and interest. The petitioner requested to pay the remaining interest liability in installments. The court ordered the petitioner to pay Rs.10,00,000 by 15.04.2024, with the remaining amount in 11 monthly installments. Failure to comply may result in further recovery actions by the government. The petition was disposed of with no costs.