Instalment time for balance interest liability granted after settlement order, where tax and penalty were already paid.

The writ petition concerned whether the petitioner could be given time to pay the remaining interest liability in instalments after a settlement order. The petition did not challenge the settlement order on merits, and the petitioner had already paid the additional service tax and penalty while expressing readiness to clear the balance interest. Having regard to the object of the settlement mechanism, the Madras HC granted time for payment, directing the petitioner to begin paying the balance interest within one week and to clear the entire amount within four months.

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Issues: Whether the petitioner was entitled to time to pay the balance interest liability in instalments after the settlement order.

Analysis: The writ petition did not assail the settlement order on merits. The petitioner had already paid the additional service tax and penalty, and expressed readiness to clear the remaining interest liability. In the circumstances, and having regard to the object of the settlement mechanism, the Court found it to grant time for payment of the balance amount.

Conclusion: The petitioner was granted time to commence payment of the balance interest liability within one week and to clear the entire amount within four months.

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