The Gauhati High Court has permitted the assessee to furnish the GST dues in 48 equal instalments considering their financial conditions.
The applicant firm Veteran Facility Management Services Pvt Ltd asked the court to avail that, due to the unstable financial condition, this will not become possible to furnish the whole due amount along with the interest and the penalty in 36 instalments which is the highest limit for the chief commissioner and thus asks to gather the discretionary power of the Court in permitting them to file the dues in 48 instalments.
Under the circular issued on 28/02/2015, the commissioner of the GST has the power and has the intention of delivering the sanction to furnish the arrear of the GST in instalments up to the highest of 24 monthly instalments, as well as the Chief Commissioners would provide the jurisdiction and authority to sanction the payment of the arrears in monthly instalments greater than 24 up to a maximum of 36.
Justice Achintya Malla Bujor Barua ruled that There may be an inherent power in Article 226 of the Constitution of India for the Court to exercise discretion as long as 36 instalments are statutorily permissible, but we are of the view that the Court ought not to randomly extend such instalments beyond 36 In the guise of exercising discretion, we note that at the same time if the petitioner firm is not able to receive further instalments, the IRS will be unable to collect the tax due, which may result in the suspension of the cancellation order. Then the petitioners would no longer be able to conduct business in the current form in which they are doing business and the Department would no longer be able to collect any more taxes from the petitioners in the form of the present business.
Acknowledging the whole concern, the court asked the council in the GST department that in the facts of the current case, the permissible instalments would be prolonged up to 48.
In the conclusion, the court mentioned that “Without taking any specific view on the aforesaid aspect and in order to provide some succour to the petitioner firm so that they can remain in the business they are presently undertaking, it is provided that the amount of Rs.2,58,30,801/- plus the interest and the penalty that may be applicable under the law be evaluated by the department and the assessed amount be determined. The said amount be equally divided by 48 and the monthly amount payable by the petitioner firm be determined and communicated to the petitioner. Upon such determination, the petitioner firm shall pay the determined monthly instalments within the 7th of every month.”
