2024 (2) TMI 289 - HC - GST

Tax Payment Extension Granted: Petitioner Wins Right to Request Time Modification Under Section 79(1)(c)(iv)

The HC examined a tax payment representation under TNGST Act. The court directed the proper officer to consider the petitioner's request for time ... Extension of time for payment - power of proper officer under Section 79(1)(c)(iv) of the TNGST Act - notice for recovery - attachment of bank accounts - consideration and disposal of representationPower of proper officer under Section 79(1)(c)(iv) of the TNGST Act - notice for recovery - extension of time for payment - Whether the proper officer has discretion to extend time for payment after issuing a notice for recovery under the TNGST Act - HELD THAT: - The Court examined Section 79(1)(c)(iv) of the TNGST Act and observed that the proper officer possesses discretion to extend the time for making payment where a notice for recovery has been issued in terms of clause (c)(i) of Section 79(1). The observation was recorded in the context of the petitioner's contention that the power to grant extension is available to the proper officer as well as the Commissioner. The Court accepted that the proper officer's power to grant extension is available in the circumstances described in Section 79(1)(c)(iv). [Paras 4]The proper officer has discretion under Section 79(1)(c)(iv) of the TNGST Act to extend time for payment where a notice for recovery has been issued.Consideration and disposal of representation - attachment of bank accounts - extension of time for payment - Disposition of the petitioner's representation dated 28.11.2023 seeking time to make payment and revocation of attachment - HELD THAT: - The Court did not decide the merits of the petitioner's request for extension or for revocation of the bank account attachment. Instead, the Court directed the third respondent to consider and dispose of the representation in accordance with the applicable provisions of the TNGST Act, after giving the petitioner a reasonable opportunity. The direction includes that the representation shall be disposed of within two months from receipt of a copy of the order, and permits the petitioner to request lifting of the attachment subject to such terms as the proper officer may impose. This amounts to remand for fresh consideration rather than a final adjudication on merits. [Paras 5]The representation dated 28.11.2023 is to be considered and disposed of by the third respondent in accordance with the TNGST Act after giving the petitioner a reasonable opportunity, within two months; the petitioner may seek revocation of the attachment subject to terms imposed by the proper officer.Final Conclusion: Writ petition disposed by directing the third respondent to consider and dispose of the petitioner's representation of 28.11.2023 under the TNGST Act, after affording a reasonable opportunity, within two months; petitioner may request lifting of the bank account attachment subject to such terms as the proper officer may impose. Issues involved: The petitioner seeks consideration of a representation for granting time for payment of tax u/s 79(1)(c)(iv) of the Tamil Nadu Goods and Services Act, 2017.Summary:Issue 1: Representation for Time ExtensionThe petitioner received notices demanding payment of tax and submitted a representation seeking 90 days time for payment and revocation of bank account attachment.Issue 2: Proper Officer's DiscretionThe Additional Government Pleader argued that the petitioner should have applied u/s 80 of the TNGST Act for time extension. However, the petitioner's counsel contended that the power is also conferred on the proper officer u/s 79(1)(c)(iv).Judgment:Upon examining Section 79(1)(c)(iv) of the TNGST Act, it was found that the proper officer has discretion to extend time for payment if a notice for recovery has been issued. The court directed the third respondent to consider and dispose of the petitioner's representation within two months, taking into account the provisions of the Act. The petitioner was given the opportunity to request raising the attachment, subject to the proper officer's terms.