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2024 (6) TMI 1033 - HC - GSTIssues involved: The judgment deals with the issues of rejection of request for payment of tax in installments, freezing of bank account, representation seeking time for payment of tax arrears, and consideration of granting installments for tax payment. Rejection of request for payment of tax in installments: The petitioner, a private company executing works contracts, was aggrieved by the rejection of the request for payment of tax due in installments. The petitioner was due an amount towards arrears of tax but could not pay as payments were not received from the principal contractor. The Court modified the garnishee order, allowing the petitioner to deposit tax dues within two weeks of receiving payments from contractors. The Court emphasized the need to adjudicate equitably within the GST Act's framework. Freezing of bank account: The 1st respondent's actions resulted in freezing the petitioner's bank account, hindering the company's operations. The petitioner sought relief through a writ petition, which was disposed of with permission to make a representation for seeking time for payment. The petitioner's plea for a six-month extension was summarily rejected by the 1st respondent, leading to a challenge before the Court. Representation seeking time for payment of tax arrears: The petitioner submitted a representation seeking six months to make due payments, which was rejected by the 1st respondent. The Court noted that the petitioner did not deny the tax arrears but requested installments for payment. The Court highlighted the need for a pragmatic approach in considering the petitioner's request and set aside the impugned proceedings, allowing the petitioner to pay tax arrears in six monthly installments. Consideration of granting installments for tax payment: The Court, after considering the facts and circumstances, permitted the petitioner to pay tax arrears in installments over six months. The Court set aside the proceedings and issued directions for repayment of tax arrears in monthly installments. The judgment emphasized the need for a balanced approach to ensure the company's operations were not unduly affected while addressing tax arrears under the GST Act.
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