Sales Tax Officer And Not District Collector Empowered To Permit Payment Of Sales Tax Dues In Instalments: Kerala High Court

Justice Dinesh Kumar Singh observed thus:

“The Kerala General Sales Tax Acts and Rules empowers the assessing authority ie.,the Sales Tax Officer to grant 6 instalments as per the provisions of Rules 30(B) of the KGST Rules.”

The petitioner had approached the High Court against orders issued to him by the Tahsildar seeking recovery of sales tax dues along with interest from August 2022 to August 2023 in relation to sale of Indian Man Made Foreign Liquor.

The Counsel for the petitioner submitted that payments can be made in instalments as per Rule 30(B) of the Kerala General Sales Tax Rules,1963 and under Section 23(3) of the Kerala General Sales Tax Act, 1963. It was argued that the petitioner had submitted an application to the District Collector seeking permission for paying the tax amount with interest in fifty installments.

Rule 30(B) of the Kerala General Sales Tax Rules,1963 states that assessing authority can permit the dealer to pay tax amount to be paid in six instalments, based on his request. The Court examined Rule 30(B) of Kerala General Sales Tax Rules,1963 and held that under the rules, the assessing authority empowered to provide instalment pay facility was the Sales Tax Officer and not the District Collector.

“Under the provisions of the Kerala General Sales Tax Act and Rules, the District Collector has no authority or power to grant instalments for payment of the tax dues.”

On the above observations, the Court permitted the petitioner to submit his request before the Sales Tax Officer seeking facility for payment of sales tax dues in installments.

“In view thereof, the petitioner is permitted to move an application before the 4th respondent for availing 6 instalments as per the provisions of Rules 30(B) of the KGST Rules within a period of ten days from today.”

Counsel for the Petitioner: Advocate M R Sarin

Counsel for the respondents: Government Pleader Reshmita Ramachandran

Citation: 2023 LiveLaw (Ker) 497

Case title: S Mangalan V The District Collector

Case number: WP(C) NO. 29932 OF 2023

Click here to download/read Judgment