Petitioner granted tax arrears relief with monthly instalments due to Covid financial constraints

The Court allowed the petitioner, a private limited company in automobile sales, to pay arrears of tax in monthly instalments from Nov 15, 2020, to Aug 15, 2021, including interest and late fees, due to financial constraints during the Covid pandemic. The petitioner, who had filed GSTR-1 returns for Feb-May 2020, was granted this relief as they accepted the tax liability without dispute and faced challenges making a lump sum payment. Failure to comply with the instalment plan would result in the respondent initiating lawful recovery proceedings.

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Issues:
1. Petitioner seeking permission to pay arrears of tax in instalments due to financial difficulties during Covid pandemic.
2. Interpretation of provisions of the Act regarding payment of admitted tax in instalments.

Analysis:
1. The petitioner, a private limited company in automobile sales, filed GSTR-1 returns for Feb-May 2020 but faced financial constraints due to Covid pandemic. The petitioner sought permission to pay arrears of tax without contesting, citing inability to make lump sum payment. The respondent, citing statutory provisions, opposed allowing instalment payments.

2. The Court noted that the petitioner accepted the tax liability without dispute and sought instalment facility due to pandemic-induced financial challenges. Referring to a previous case, the Court directed the respondent to accept belated returns for Feb-Apr 2020 without immediate tax payment. The petitioner was allowed to pay the tax liability, including interest and late fees, in monthly instalments from Nov 15, 2020, to Aug 15, 2021. However, failure to pay a single instalment would nullify the benefit of the judgment, enabling the respondent to initiate recovery proceedings lawfully.

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