Court extends time for tax payment in installments, stresses compliance with orders.

The Court granted the applicant an extension of time to pay the balance amount in installments, considering the issue of interest on belated tax payment. Interim relief was provided based on the applicant's proposed payment schedule. Despite the applicant's failure to comply with the undertaking due to lockdown challenges, the Court extended the time period by six weeks, emphasizing the importance of honoring undertakings. Failure to pay within the extended period would lead to vacation of the interim relief, allowing respondents to proceed with garnishee notices. The judgment stressed the significance of timely tax payments and strict compliance with court orders to avoid contempt proceedings.

---

---

Issues:
1. Extension of time limit for payment of balance amount.
2. Interim relief regarding garnishee notices and interest on tax liability.
3. Compliance with the undertaking filed before the Court.

Extension of Time Limit for Payment:
In the main matter, the applicant sought an extension of time to pay the balance amount of Rs. 44,77,778 in six monthly installments. The Court considered the larger issue of whether interest on belated tax payment under Section 50 of the CGST Act is automatic or should be determined after the assessee's explanation. The applicant proposed to deposit Rs. 10,00,000 within a week and the balance in four equal installments. The Court granted interim relief based on this undertaking and scheduled a further hearing with another civil application.

Interim Relief and Compliance with Undertaking:
The applicant filed an undertaking to deposit the specified amounts within the given timeline. However, due to lockdown difficulties, the applicant failed to comply with the undertaking. The Court acknowledged the importance of honoring undertakings and the consequences of non-compliance. Despite this, the Court extended the time period by six weeks to allow the applicant to fulfill the undertaking. It was made clear that failure to pay within the extended period would result in the automatic vacation of the interim relief, allowing the respondents to proceed with the garnishee notices and related matters.

In conclusion, the Court disposed of the Civil Application, emphasizing the significance of adhering to undertakings filed before the Court and the consequences of non-compliance. The judgment highlighted the importance of timely payment of tax liabilities and the need for strict compliance with court orders to avoid contempt proceedings.

---