Petitioner denied tax remission in instalments under Section 80 for suppressing sales and failing to pay admitted liability

The HC dismissed a petition seeking remission of tax amount in instalments under Section 80 of TNGST Act. The petitioner had suppressed sales with differences between GSTR-3B and GSTR-1 returns. The court held that Section 80 benefits only compliant assessees who pay admitted tax, excluding amounts due per self-assessed returns. Since the petitioner filed returns but failed to pay tax on admitted liability, they were barred from instalment benefits. The court rejected arguments distinguishing between different return types, emphasizing that allowing such benefit would enable delinquent assessees to avoid timely tax payment obligations.

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Issues Involved:
1. Non-filing of GSTR-3B returns for the period September 2018 to March 2019.
2. Admission of discrepancies and non-payment of GST.
3. Request for payment of due tax in instalments under Section 80 of the Tamil Nadu Goods and Services Tax Act, 2017.
4. Definition and scope of "return" under Section 80.
5. Rejection of instalment request and subsequent writ petition.

Summary of Judgment:

1. Non-filing of GSTR-3B Returns:
The petitioner, a company and assessee under the Tamil Nadu Goods and Services Tax Act, 2017, did not file GSTR-3B returns for the period September 2018 to March 2019.

2. Admission of Discrepancies and Non-payment of GST:
During an inspection on 11.03.2019, several discrepancies were noted, which the petitioner admitted. The petitioner acknowledged non-payment of GST for the period in question due to financial losses from the fall in coal prices and the need to sell stock at unviable prices to avoid additional charges.

3. Request for Instalments:
The petitioner requested to remit the due amounts in 24 instalments along with interest, which was rejected on 31.10.2019 by the Commissioner. The Commissioner held that the facility of instalments under Section 80 applies only to disputed tax and not admitted tax.

4. Definition and Scope of "Return" under Section 80:
The petitioner argued that GSTR-1 does not constitute a "return" and thus Section 80's exclusion should not apply. This argument was rejected based on Section 2(37) defining 'return' and the provisions from Section 37 to Section 48, which indicate that various forms, including GSTR-1, constitute returns. The court emphasized that GSTR-1 is a statutory return as per the scheme of the Act.

5. Rejection of Instalment Request and Writ Petition:
The court noted that the petitioner had filed GSTR-1 but not paid the tax, barring them from obtaining benefits under Section 80. The court referenced the Orissa High Court decision in M/s. P.K. Ores Pvt Ltd v Commissioner of Sales Tax, supporting the conclusion that the benefit under Section 80 is only for assessees compliant in paying admitted tax. Consequently, the writ petition was dismissed, and the impugned order was sustained. No costs were awarded, and the connected miscellaneous petition was closed.

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