Didn’t Pay Their GST Dues Under Amnesty Scheme, Kerala HC Upholds Tax Notice Intimating Payment

The notice intimating the payment of the agreed-upon instalment sum of tax, which was due as the assessee failed to fulfil the Goods and Service Tax (GST) liability under the Amnesty Scheme, has been upheld by the Kerala High Court.

The petitioner in this case is Farooque Construction, a partnership firm registered under the Central GST/Kerala GST Act and recognized as a dealer under the same Act and Rules.

The petitioner had requested the GST authority to resolve their tax liabilities through the Amnesty Scheme, which was implemented on June 22, 2020. After reviewing the petitioner’s application, the department assessed the aggregate liability for the tax dues to be settled at Rs. 6,08,561/-. Additionally, the petitioner was allowed to make instalment payments for the outstanding GST amount by the Amnesty Scheme provisions.

As per the instructions, the petitioner was ordered to make the first instalment payment, which should not be less than 20% of the settled amount, within 30 days of receiving the intimation. The remaining balance had to be paid in four subsequent instalments.

After making a successful initial payment of Rs. 1,21,713/- towards the first instalment, the petitioner did not proceed to make any subsequent payments to the department. It is important to note that the Amnesty order was issued on June 22, 2020.

Read also: New GST Amnesty Scheme for Filing of Appeals Against Orders

In the ruling, a single bench comprising Justice Dinesh Kumar Singh noted that despite the settlement of the liability under the Amnesty Scheme, the petitioner failed to fulfil the obligation, leading the court to find no grounds for interfering with the challenged notice.

Case Title	Farooque Construction
Citation	WP(C) NO. 39039 OF 2023
Date	24.11.2023
Petitioner By	Fathima Manzil
Represented by	Sajeela Baiju
Kerala High Court	Read Order