2021 (9) TMI 711 - HC - VAT and Sales Tax

Recovery of arrears of tax - petitioner made a request to collect the tax arrears by way of instalments as the petitioner company was facing financial crisis due to COVID-19 situation - HELD THAT - The petitioner is willing to settle the tax arrears by way of 17 instalments, each instalments of ₹ 10,00,000/- per month. The petitioner is directed to settle the entire arrears of tax dues in 17 installment and each instalment is ₹ 10,00,000/- per month and, the first installment will commence from 20 th September 2021. The petitioner is directed to pay the monthly installments on or before 20th day of every calendar month without any fail. In the event of non-payment, the respondents are directed to initiate recovery action by following the procedures as contemplated under law. Petition disposed off.

Summary

Issues:
1. Relief sought in W.P.No.30727 of 2014 to quash a notice dated 01.11.2014.
2. Relief sought in W.P.No.30728 of 2014 to quash an order dated -.11.2014.
3. Settlement of tax arrears by the petitioner in 17 installments of ?10,00,000 each due to financial crisis.

Analysis:
1. The petitioner sought relief in W.P.No.30727 of 2014 to quash a notice dated 01.11.2014 issued by the 3rd respondent. The petitioner submitted a representation on 19.11.2014, indicating a willingness to clear the tax arrears by paying ?10 lakhs per month for 17 months due to facing financial crisis. The petitioner requested to collect the arrears in installments. The Court, considering the representation and the petitioner's financial situation, directed the petitioner to settle the tax dues in 17 installments of ?10,00,000 each, with the first installment starting from 20th September 2021. Non-payment would lead to recovery action by the respondents as per the law.

2. In W.P.No.30728 of 2014, the petitioner sought relief to quash an order dated -.11.2014 enclosed with Form U. The Court's order encompassed both writ petitions, directing the petitioner to pay the tax arrears in 17 installments of ?10,00,000 each, starting from 20th September 2021. The Court disposed of both petitions with no costs involved, and closed connected miscellaneous petitions.

3. The petitioner, facing financial crisis exacerbated by the COVID-19 situation, expressed willingness to settle the tax arrears in 17 installments of ?10,00,000 each. Acknowledging the petitioner's undertaking and the representation dated 19.11.2014, the Court ordered the petitioner to pay the installments monthly by the 20th day of each calendar month without fail. Failure to comply would result in the respondents initiating recovery action following legal procedures. The Court's decision aimed to address the financial difficulties faced by the petitioner while ensuring the tax arrears are settled in a structured manner over time.