2024 (1) TMI 1043 - HC - GST

Taxpayer Receives Flexible Payment Plan for Outstanding Tax Dues in Three Monthly Installments Under Covid-19 Relief Measures

HC granted relief to taxpayer by allowing interest payment for tax dues in three equal monthly installments from 31.01.2024 to 28.03.2024, considering ... Caution notice - payment of interest - equitable relief by installment of statutory dues - payment in instalments - consequences of defaultCaution notice - payment of interest - payment in instalments - consequences of default - Direction to pay amounts demanded in the caution notice by way of three equal monthly instalments and permission for the respondent to act on default. - HELD THAT: - The petitioner contested a caution notice calling for payment of interest in respect of four assessment years and sought time to pay on account of business disruption during the Covid-19 pandemic, noting earlier proceedings before the Court. The respondent accepted notice and sought that interest be paid expeditiously. Having taken note of the petitioner's position and the earlier order, the Court disposed of the writ petition by permitting payment of the amounts demanded in the caution notice in three equal monthly instalments, prescribing the schedule for payment and expressly clarifying that the respondent remains at liberty to take action in accordance with law in the event of default by the petitioner. The order is administrative-relief oriented and does not adjudicate the substantive correctness of the demand beyond directing payment on the stated terms.Petitioner directed to pay the amounts demanded in the caution notice in three equal monthly instalments on the prescribed dates; respondent may take action as per law on default.Final Conclusion: Writ petition disposed by permitting the petitioner to pay the demanded interest in three equal monthly instalments on specified dates; respondent authorised to proceed in accordance with law in case of default; connected W.M.P.Nos.35347 and 35348 of 2023 closed. Issues Involved: Challenge to caution notice demanding interest payment for tax dues, request for time extension due to Covid-19 impact.Challenge to Caution Notice: The petitioner challenged a caution notice demanding interest payment for four assessment years. The petitioner claimed that all tax dues were settled but needed time to pay interest due to business impact during the Covid-19 pandemic. The petitioner's counsel referred to a previous court order related to the petitioner's case.Resolution: Mrs. E. Renganayaki, representing the respondents, acknowledged the petitioner's situation and agreed that interest payment should be made promptly. The court, after considering the submissions and the previous order, directed the petitioner to pay the demanded amounts in three equal monthly installments. The due dates for the installments were specified as 31.01.2024, 29.02.2024, and 28.03.2024. The order emphasized that failure to comply could result in legal action by the respondent. No costs were awarded, and related petitions were closed as a consequence.