Writ Petition dismissed as alternative remedy available and directs department to decide payment of GST Dues in Instalments

[CA Bimal Jain]

The Hon’ble Kerala High Court in the case of KRISHNA STEEL ROLLING MILLS VERSUS DEPUTY COMMISSIONER OF STATE TAX (ARREARS RECOVERY) , PALAKKAD, KERALA - 2023 (10) TMI 283 - KERALA HIGH COURT dismissed the writ petition, while allowing the assessee to pay in instalments of the arrears of tax and further directed the Commissioner to decide the application within 7 days from the day the assessee approached the Commissioner.

Facts:

M/s Krishna Steel Rolling Mills (“the Petitioner”) filed GSTR-1 but failed to file the return in GSTR-3B. Consequently, the assessing officer issued a recovery notice amounting to more than five Crores in outstanding tax.

The Petitioner contended that the Commissioner of State Tax ("the Respondent”) had miscalculated the tax, leading to an assessment order ("the Impugned Order”) for recovery of tax dated November 28, 2019.

However, the Petitioner failed to challenge the Impugned Order through statutory appeals. Aggrieved by the Impugned Order, the Petitioner approached the Court through a writ petition almost four years after the Impugned Order.

Issue:

Whether the writ petition is maintainable when filed almost four years after the issuance of the Impugned Order?

Held:

The Hon’ble Kerala High Court in KRISHNA STEEL ROLLING MILLS VERSUS DEPUTY COMMISSIONER OF STATE TAX (ARREARS RECOVERY) , PALAKKAD, KERALA - 2023 (10) TMI 283 - KERALA HIGH COURT held as under:

• Held that, the writ petition is not maintainable as the Petitioner had not initiated any proceeding within four years and directly approached this Court without availing alternate remedy of filling statutory appeal.
• Observed that, under Section 80 of the Central Goods and Service Act, 2017 (“the CGST Act”), the Commissioner has the power to grant up to 12 installments for the payment of arrears of tax.
• Directed that, the Petitioner may approach the Respondent within 7 days from the pronouncement of the order for payment of arrears of tax in the form of installments and the Respondent should decide it within 7 days.
• Dismissed the writ petition.

Relevant Provision:

Section 80 of the CGST Act:

Payment of tax and other amount in instalments.

On an application filed by a taxable person, the Commissioner may, for reasons to be recorded in writing, extend the time for payment or allow payment of any amount due under this Act, other than the amount due as per the liability self-assessed in any return, by such person in monthly instalments not exceeding twenty-four, subject to payment of interest under section 50 and subject to such conditions and limitations as may be prescribed:

Provided that where there is default in payment of any one instalment on its due date, the whole outstanding balance payable on such date shall become due and payable forthwith and shall, without any further notice being served on the person, be liable for recovery.

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