Court May Permit Assessee to Pay Taxes in Extended Installments Beyond Those Granted by Assessing Authority Under KGST Rules: Kerala HC
The Kerala High Court observed that the Court can exercise its discretion and allow the assessee to pay the amount of tax in easy instalments, extending beyond the installments granted by the assessing authority under Rule 30B of the Kerala State Goods and Services Tax Rules, 2017.
The Court was hearing a Writ Petition seeking the indulgence of the Court to allow the petitioner to pay the balance arrears of tax in 20 monthly installments.
The bench of Justice Murali Purushothaman observed, “Therefore, in appropriate cases, this Court can exercise discretion under Article 226 of the Constitution and allow the dealer to pay the amount of tax in easy installments, extending beyond the installments granted by the assessing authority under Rule 30B of the KGST Rules.”
Advocate N. Muraleedharan Nair appeared for the Appellant and Government Pleader Reshmitha R. Chandran appeared for the Respondent.
Brief Facts-
M/s Krishna Holiday Village, assessed under the Kerala General Sales Tax Act, 1963, operates a bar-attached hotel and is liable for turnover tax. Due to financial difficulties, the petitioner requested installment payments instead of a lump sum. The assessing authority granted six monthly installments under Section 23 of the KGST Act and Rule 30B of the KGST Rules. However, the petitioner now faces severe financial hardships and cannot meet the balance payments. The statute restricts the assessing authority from allowing more than six monthly installments.
The Court noted that Section 23 of the KGST Act deals with payment and recovery of tax and provides that the tax assessed or any other amount demanded under the Act shall be paid in such manner and in such installments, if any, and within such time, as may be specified in the notice of demand, not being less than twenty-one days from the date of service of the notice.
The Court further noted that as per Rule 30B, the assessing authority can permit the dealer to pay the amount of tax in up to six monthly installments, based on his request, but not more than six.
While interpreting the law under KGST Rules the Court observed, “The statute does not prohibit the payment of taxes in insallments. It allows the assessing authority to permit the dealer to pay the amount of tax in up to six monthly installments upon request.”
Appreciating the petitioner’s bona fides and taking note of the petitioner’s plea of financial difficulties, the Court permitted the petitioner to pay the balance amount of tax in 20 installments.
Accordingly, the Court disposed of the Writ Petition.
