Writ Court Has Power To Grant Installments For Payment Of Tax Dues Extending Beyond Installments Provided Under Statute: Kerala High Court
The Kerala High Court has held that the Writ Court has the power to grant instalments, extending beyond the instalments granted by the assessing authority for clearing tax dues under Rule 30 B of the Kerala General Sales Tax (KGST), 1963.As per Rule 30B of the KGST Rules, the assessing authority can permit payment of tax in not more than six monthly instalments based on the request of...
The Kerala High Court has held that the Writ Court has the power to grant instalments, extending beyond the instalments granted by the assessing authority for clearing tax dues under Rule 30 B of the Kerala General Sales Tax (KGST), 1963.
As per Rule 30B of the KGST Rules, the assessing authority can permit payment of tax in not more than six monthly instalments based on the request of the dealer.
Justice Murali Purushothaman observed that the writ court invoking its jurisdiction under Article 226 of the Constitution has the power to grant instalment facilities extending beyond instalments granted by the assessing authority under Rule 30B of the KGST Rules.
“The statute does not prohibit the payment of taxes in insallments. It allows the assessing authority to permit the dealer to pay the amount of tax in up to six monthly installments upon request. Therefore, in appropriate cases, this Court can exercise discretion under Article 226 of the Constitution and allow the dealer to pay the amount of tax in easy installments, extending beyond the installments granted by the assessing authority under Rule 30B of the KGST Rules.”
The petitioner firm which is running a bar-attached hotel is an assessee under the KGST Rules and is liable to pay turnover tax. The tax due for the assessment year 2021-2022 along with interest was demanded to be paid in lump sum.
The petitioner submitted an application seeking an instalment facility for clearing dues and the assessing authority provided for payment of tax dues in six instalments as per Rule 30B.
The petitioner contended that he approached the High Court seeking twenty instalments for clearing tax dues since he was facing financial problems.
On analyzing Rule 30B, the Court stated that the statute does not prohibit payment of tax dues in instalments. It held that in appropriate cases, the writ court could exercise its power to provide instalments extending beyond the instalments provided under Rule 30B, that is, more than six instalments.
The Court noted that the petitioner is bona fide and has paid a substantial portion of the tax. It held that the petitioner could be permitted to pay the rest of the tax dues in ten monthly instalments.
The writ petition was accordingly disposed of.
Counsel for Petitioner: Advocates N.Muraleedharan Nair, Antony Jones
Citation: 2024 LiveLaw Ker 328
Case Title: M/S. Krishna Holiday Village v The Deputy Commissioner
Case Number: WP(C) NO. 18574 OF 2024
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