IN
THE HIGH COURT OF JUDICATURE AT MADRAS
DATED:
26.03.2024
CORAM:
THE HONOURABLE MR.JUSTICE SENTHILKUMAR RAMAMOORTHY
Writ
Petition No.8193 of 2024 & W.M.P.No.9143 of 2024
M/s.Angel
Label Division & Angel Zippel (HUF),
Represented
by its Karta,
No.32,
Parasakthi Kovil Street,
Kongu
nagar, Tirupur~641 607.
Mr.PADMACHARAN
BEHERA ... Petitioner
~vs~
1.The
Assistant Commissioner (ST) (FAC),
Tirupur Kongunagar Circle,
Indira Nagar 1st Street,
No.16, Emperor Building,
Avinashi Road, Tirupur~641 603.
2.The
Branch Manager,
Federal Bank,
P.B.419 Industrial Finance Branch,
Deepa Complex, Mangalam Road,
Tirupur 641 604. ... Respondents
PRAYER: Writ Petition filed under Article 226 of the
Constitution of India, pleased to issue a Writ of Certiorarified Mandamus to
call for the records of the first respondent in his proceedings in
GSTIN:33AABHD7353J1ZE/2023/A2, quash the bank attachment notice dated
24.02.2024 issued to the second respondent therein and further direct the first
respondent to permit the petitioner to remit the interest liability of
Rs.68,63,683/~ for the period 2018~19 and 2019~20 in fifteen equal monthly
installments.
For Petitioner :
Mr.P.V.Sudakar
For Respondents :
Mr.C.Harsha Raj
Additional Government Pleader for R1
ORDER
1. A
bank attachment notice dated 24.02.2024 is challenged in this writ petition.
2. The
petitioner is a registered person under applicable GST enactments. On account
of non~filing of returns, the petitioner-s GST registration was cancelled by
order dated 20.09.2017. Such order was revoked after the petitioner remitted
tax dues and filed returns up to to the date of
cancellation. Since such tax liability was discharged belatedly, the
petitioner became liable to pay interest thereon. As against the total interest
liability of Rs.75,84,264/~, a sum of Rs.7,20,581/~ was paid by the petitioner
leaving a balance of Rs.68,63,683/~.
3. Learned
counsel for the petitioner submits that the petitioner is in great financial
difficulty and, therefore, requires time for payment of amounts outstanding
towards interest. He makes a request that the petitioner be permitted to
discharge the interest liability in 15 equal installments.
4. Mr.C.Harsha
Raj, learned Additional Government Pleader, accepts notice for the first respondent.
5. By
referring to Section 80 of the Tamil Nadu Goods and Services Tax Act, 2017, he
submits that the Commissioner is empowered to permit payment of tax in
instalments, but such authority does not extend to self assessed tax liability.
6. The
admitted position is that the tax liability pertaining to the relevant periods
was discharged by the petitioner, albeit belatedly. The petitioner asserts that
a sum of about Rs.7.20 lakhs was paid towards discharge of interest liability
leaving a balance of about Rs.68 lakhs.
By taking into account that the
tax liability was discharged and the petitioner
also paid about Rs.7.20 lakhs towards interest liability, it is just and
appropriate that conditions be imposed subject to which the petitioner is
permitted to pay the interest liability in installments.
7. Therefore, W.P.No.8193 of 2024 is
disposed of on the following terms:
(i) the petitioner shall pay a sum of Rs.10,00,000/~
towards outstanding interest liability on or before 15.04.2024. Subject to and
upon receipt of this sum by the first respondent, the impugned bank attachment
and garnishee notices issued for recovery of such interest liability shall
stand withdrawn.
(ii) The petitioner shall pay the remaining
outstanding interest liability in 11 equal monthly installments on or before
the 15th of every succeeding month. In case of default, it is open to the first
respondent to issue fresh bank
attachment or garnishee orders or take any other measures for recovery of dues
in accordance with law. Consequently, connected miscellaneous petition is
closed. No costs.
Disclaimer:
All the Information is based on the notification, circular and order issued by
the Govt. authority and judgement
delivered by the court or the authority information is strictly for educational
purposes and on the basis of our best
understanding of laws & not binding on anyone.
