Priya Associates Vs Deputy Commissioner
Date: November 25, 2024
Court: High Court
Bench: Madras
Type: Writ Petition
Subject Matter
Taxpayer granted the liberty to pay the interest in ten equal monthly installments as principal amount is already paid
Summary
The Madras High Court addressed a writ petition challenging a recovery notice for interest amounting to Rs.28,87,154, which was related to delayed payment of GST for the financial year 2019-20. The petitioner argued that while they had already paid the full GST amount, they were facing severe financial difficulties and requested more time to pay the interest. In response, the court granted the petitioner the liberty to pay the interest in ten equal monthly installments, starting on December 15, 2024, with the stipulation that the attachment on the petitioner’s assets would be lifted upon the first installment payment. The ruling indicated that if the petitioner defaulted on the payments, the entire amount would become due immediately, and the authorities were permitted to resume recovery actions as per law. The case was concluded without costs, and related motions were also dismissed.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
The present writ petition is filed challenging the recovery notice whereby a sum of Rs.28,87,154/-, representing interest on the delayed payment of taxes for the period 2019-20 sought to be recovered.
2. It is submitted by the learned counsel for the petitioner that entire taxes have been paid and that they are willing and ready to pay the interest part but would request some time to remit the interest inasmuch as the petitioner is facing severe financial crises.
3. Learned Additional Government Pleader appearing for the respondents would submit that it is always open to the petitioner to avail their remedy under Section 80 of the Act.
4. Learned counsel for the petitioner would submit that the petitioner had no other option but to approach the court inasmuch as there is recovery proceedings, which is initiated and the application under Section 80 does not enable them to seek any interim protection.
5. Taking into fact that the petitioner have already remitted the entire taxes, they shall pay the interest of Rs.28,87,154/- in ten equal monthly instalments.
6. The first instalment shall be on the 15th of December, 2024, followed by 15th of every successive months. The attachment shall be lifted/withdrawn, on the payment of the first instalment. If there is any default, the entire sum shall become due and payable in one lumpsum. It is always then open to the respondent authorities to proceed with the recovery proceedings, in accordance with law.
7. With the above directions, the writ petition stands disposed of. There shall be no order as to costs. Consequently, WMP Nos.38512 and 38513 are closed.