M/S. Krishna Holiday Village vs. The Deputy Commissioner Of State Tax

The petitioner is an assesse under the Kerala General Sales Tax Act, 1963 (hereinafter referred to as the 'KGST Act' for short) engaged in running a bar attached hotel. For the assessment year 2020-21 the petitioner did not pay the self assessed tax which according to the petitioner was on account of financial difficulties. The petitioner approached the respondent who by Ext.P4 granted 6 monthly installments to pay a total sum of Rs.1,30,13,412/-. The first installment payable on 10-06-2022 was paid by the petitioner. But the subsequent installments payable on 10-07-2022, 10-08-2022, 10-09-2022 and 10-10-2022 have not been paid by the petitioner. The last installment is payable on 10-11-2022. 3. The learned counsel appearing for the petitioner would submit that if the petitioner is given a reasonable time the petitioner will be in a position to pay off the entire tax due along with the interest demanded.

The learned Senior Government Pleader refers to the provisions under Rule 30B of the KGST Rules and points out that the said Rule is the only enabling provision permitting the tax payer to pay the amounts due from him in installments. It is submitted that in the case of the petitioner the amount now demanded from the petitioner are amounts payable as self assessed tax and no further demand was imposed on the petitioner at the time of assessment. It is

Having heard the learned counsel for the petitioner and learned Senior Government Pleader for respondents, I am of the view that considering the fact that the petitioner is pointing out that he was unable to pay the tax in lump sum or in installments as granted by Ext.P4 only on account of severe financial difficulties caused by COVID-19 pandemic which seriously affected by the hotel industry, I am of the view that notwithstanding the fact that there is no statutory provision to grant such installment to the petitioner, the petitioner can be granted one further opportunity to clear the liability in installments. I make it clear that this order shall not be treated as a precedent and is issued purely as a matter of indulgence and taking into account the fact that the petitioner was in serious financial difficulties owing to the COVID-19 pandemic. It is not disputed before me that the petitioner paid the 1st installment due under Ext.P1. The last installment is payable on 10-11- 2022. Taking into consideration of the above, this writ petition is disposed of in the following manner; (i) The petitioner shall pay a sum of Rs.21,68,903/- payable on 10-11-2022 (the last installment) on or before that date; (ii) The installments which were not paid on 10-07-2022, 10-08-2022, 10-09- 2022 and 10-10-2022 shall be paid in 3 equal monthly installments starting from 10-12-2022. The subsequent installments shall be paid on or before 10th day of succeeding months along with any further interest that may be demanded from the petitioner.