Tvl. Amk Athencottasan Muthamizh vs. State Tax Officer

Held

The Court considered the rival submissions and the provisions of Section 80 of the GST Act, which allows the Commissioner, upon an application filed by a taxable person, to extend the time for payment or allow payment of any amount due, other than self-assessed liability in a return, in monthly instalments not exceeding twenty-four, subject to interest under Section 50 and prescribed conditions. The Court noted that the petitioner's request was limited to seeking instalments for the interest amount. Therefore, the Court suo motu impleaded the Commissioner, Commercial Taxes, as a party respondent. The Court disposed of the writ petitions with a direction to the petitioner to submit an application to the Commissioner seeking monthly instalments as per Section 80 of the Act. The Commissioner was directed to pass appropriate orders on merits and in accordance with law. The Court explicitly stated that it had not expressed any opinion on the merits of the petitioner's claim.

Facts

The petitioner, Tvl.AMK Athencottasan Muthamizh Kazhagam Man Power Services, is a service provider that failed to pay GST on time for the tax periods 2019-20 and 2020-21. Consequently, the State Tax Officer and Deputy Commissioner (ST) imposed a penalty, interest under Section 50(1) of the GST Act, and made a demand under Section 73(3) of the GST Act. The petitioner filed two writ petitions challenging these orders. During the hearing, the petitioner's counsel stated they were not pressing the original relief but requested consideration under Section 80 of the GST Act, which allows for payment of dues in instalments. The respondents argued that the petitioner had submitted GST returns belatedly for 2019-20 and that an application under Section 80 must be filed with the Commissioner.

Key Issues

1. Whether the Court should consider the petitioner's request for payment of interest imposed under Section 50(1) of the GST Act in monthly instalments not exceeding 24, as provided under Section 80 of the GST Act, despite the petitioner initially challenging the demand notices issued under Section 73(3) of the GST Act? Petitioner's contention: The petitioner, represented by senior counsel, submitted that they were not pressing the original relief sought in the writ petitions. Instead, they requested the Court to consider their case under Section 80 of the GST Act, arguing that the Commissioner has the power to grant up to 24 monthly instalments for the payment of interest imposed under Section 50(1) of the Act, especially considering the belated payment during the Covid-19 period. Revenue's contention: The learned Additional Government Pleader submitted that the petitioner had submitted GST returns belatedly not only for the Covid-19 period but also for the year 2019-20. The revenue further contended that for invoking the provision under Section 80 of the Act, the petitioner must submit a formal application before the Commissioner, which would then be considered on its merits.