M/S. Vjk Enterprises vs. Superintendent

Facts

M/s. VJK Enterprises (Petitioner) filed a writ petition challenging an order-in-original dated 26.02.2025, which imposed a demand. The Petitioner had already paid Rs. 5,33,129/- on 16.04.2025, covering tax and interest. However, ICICI Bank (Respondent No. 5) marked a lien on the Petitioner's bank account for Rs. 9,92,644/-, representing tax, interest, and penalty under the same order. The Petitioner wished to pay the outstanding amount in instalments, but Rule 158 of the Central Goods and Services Tax Rules, 2017, was cited as an impediment. The Court had previously adjourned the matter for the revenue to obtain instructions. The Petitioner sought a direction to submit a manual application in Form GST DRC-20 for payment in 10 monthly instalments of the balance amount of Rs. 3,56,900/-.

Held

The Court disposed of the writ petition by directing the Petitioner to file a physical application in Form GST DRC-20 with the competent authority within two weeks. The competent authority was then directed to consider the Petitioner's request for payment in instalments in accordance with the law within three weeks thereafter. The Court did not delve into the merits of the Petitioner's eligibility for instalments or the specific interpretation of Rule 158, but rather facilitated the procedural step required for such a request to be considered. The ratio decidendi is that procedural avenues for seeking relief, such as applying for instalments, should be made available and considered by the authorities as per law. No costs were awarded.

Key Issues

1. Whether the Petitioner is entitled to a direction to submit a manual application in Form GST DRC-20 for payment of the outstanding demand in instalments, despite the provisions of the Central Goods and Services Tax Rules, 2017? Petitioner's Contention: The Petitioner argued that they are seeking to pay the balance amount of Rs. 3,56,900/- in 10 monthly instalments and require a direction to submit a manual application in Form GST DRC-20 for this purpose, as Rule 158 of the CGST Rules, 2017, was preventing them from doing so. They relied on the general principle of enabling payment in instalments. Revenue's Contention: The learned Senior Standing Counsel for CBIC submitted that the Petitioner should make a physical application to the competent authority in Form GST DRC-20 for making the payment in instalments. No specific provision or precedent was cited by the revenue, but their submission indicated a procedural requirement.