HC Allowed to Make Payment of Tax Dues & Interest in Installments Considering Financial Hardship of Assessee

Case Details: Neel Kamal v. Assistant Commissioner, State Tax - [2024] 158 taxmann.com 334 (Calcutta)

Judiciary and Counsel Details

• • Md. Nizamuddin, J.
  • Sanjib Bandyopadhyay for the Petitioner.
  • Bhaskar Prosad Banerjee, Ms Manasi Mukherjee, Anirban Ray, Md. T.M. Siddiquui, T. Chakraborty & S. Sanyal for the Respondent.

Facts of the Case

The petitioner was a taxable person who had made a prayer for granting instalment in making payment of tax and interest. It filed writ petition before the Calcutta High Court and contended that it was facing financial hardship and there was delay on part of GST authority in detecting such mistake of revenue due against the petitioner.

High Court Held

The Honorable High Court noted that the petitioner was facing financial hardship and the department also delayed in detecting such mistake of revenue due against the petitioner. Therefore, considering the case made out in the writ petition relating to financial hardship of petitioner and delay on part of GST authority in detecting such mistake of revenue due against the petitioner, the Court held that the petitioner would be allowed to pay tax dues and interest in question by way of ten equal instalments.

However, it was also held that in case of default in payment of any instalment, then this order of instalments would lose its force and GST authorities would be free to proceed against the petitioner in accordance with law.