Category: High Court

2 days is not enough to pay Interest on GST, of around Rs. 6.55 Lakhs. Period of 3 months was granted for payment in Instalments

Citation:

Everyday Banking Solutions Vs. Assistant Commissioner (ST)

W.P. No. 32160 of 2023 [2023] 157 taxmann.com 151 (Madras)

Relevant Facts:

  1. Due to some technical glitch and practical difficulties, the petitioner made delay in payment of GST for the period 2017-18 to 2021-22.
  2. Notice was issued by the department demanding payment of interest of Rs. 9,25,417 within 2 days, out of which only Rs. 2,69,877 was paid.

Submissions of Both Parties:

  1. Petitioner has submitted that time of 2 days is not sufficient, since the notice was issued all of a sudden and therefore requested sufficient time for payment of amount demanded.
  2. Department has submitted that already a period of 1 month was expired and that the time limit sought by the petitioner is on a higher side. However, it has requested that appropriate time limit may be fixed, considering the facts and circumstances.

Findings and Order:

Hon’ble High Court of Madras has held that: 

  1. Time period of 2 days is not sufficient to make payment of amount demanded
  2. A period of 3 months is granted to the petitioner for payment of the balance amount of Rs. 6,55,540 by way of 3 instalments – Rs. 2,10,000, Rs. 2,10,000 and Rs. 2,35,540.
  3. If the petitioner fails to pay the amount on the specified dates, department is free to initiate the recovery proceedings.

Appellate Authority is bound to look into the merits even in the absence of Assessee during proceedings

Citation:

SK Construction and Co Vs. State of Bihar

[2023] 156 Taxmann.com 553 (Patna)

Decision:

It was held that Appellate Authority is obligated under Section 107 to look into the merits of the matter and examine the grounds mentored by the assessee, even if his presence is not recorded during the proceedings.