Tag: Payment of Tax in Instalments

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.