2023 (10) TMI 283 - HC - GST

GST recovery and unilateral tax liability fixation challenged for lack of hearing; writ dismissed for delay, instalments allowed u/s80.

A writ petition sought to stay and revoke recovery proceedings and to restrain unilateral fixation of GST liability on the ground that no proper hearing ... Seeking stay and revocation on recovery proceedings until a proper hearing is provided to the petitioner by the Respondent - seeking to command the Respondent to desist from unilaterally and arbitrarily deciding the Tax liabilities without considering the facts and circumstances of the matter - seeking opportunity of personal hearing - HELD THAT:- The assessment order has been passed on 28.11.2019. The petitioner has not challenged the assessment order by filing statutory appeals. The petitioner has approached this Court by filing the present writ petition after almost four years from the date of assessment order. This Court does not find this writ petition as maintainable against the assessment order that was passed in 2019. The learned Counsel for the petitioner submits that this Court may grant some installments for making payment of the arrears of tax - Under Section 80 of the CGST Act, there is power vested in the Commissioner to grant upto 12 installments for the payment of arrears of tax. If the petitioner wants to deposit the tax in installments, the petitioner may approach the Commissioner within a period of seven days from today, and then the Commissioner should decide the application within another period of seven days thereafter for granting installments for payment of arrears of tax as assessed by the assessing authority. Petition dismissed. Issues involved:The issues involved in the judgment are the legality of recovery proceedings initiated by the Respondent, the proper calculation of tax liabilities, the provision of a fair hearing, the possibility of paying tax in installments, and the overall implementation of justice.Recovery Proceedings:The petitioner filed a writ petition seeking relief from recovery proceedings initiated by the Respondent regarding GST assessment orders totaling more than five crores. The petitioner claimed that the assessing authority had miscalculated the tax, leading to the issuance of recovery notices. However, the assessment order was passed in 2019, and the petitioner did not challenge it within a reasonable time. The court found the writ petition not maintainable against an assessment order from four years prior and dismissed it.Payment in Installments:Despite dismissing the writ petition, the court acknowledged the petitioner's request for installment payments for the tax arrears. Referring to Section 80 of the CGST Act, the court mentioned that the Commissioner has the authority to grant up to 12 installments for the payment of arrears of tax. The petitioner was advised to approach the Commissioner within seven days to request installment payments, and the Commissioner was directed to decide on the application within another seven days.Conclusion:The writ petition was ultimately dismissed, but the court allowed for the continuation of any interim orders until the Commissioner made a decision on the petitioner's request for installment payments. The judgment emphasized the importance of following statutory procedures and timely challenges to assessment orders, while also recognizing the possibility of granting relief through installment payment options as provided by the law.