M/S. Krishna Holiday Village vs The Deputy Commissioner Of State ...
2022 Latest Caselaw 10836 Ker

              IN THE HIGH COURT OF KERALA AT ERNAKULAM
                              PRESENT
               THE HONOURABLE MR. JUSTICE GOPINATH P.
   WEDNESDAY, THE 26TH DAY OF OCTOBER 2022 / 4TH KARTHIKA, 1944
                      WP(C) NO. 22931 OF 2022
PETITIONER:

          M/S. KRISHNA HOLIDAY VILLAGE
          AMALA NAGAR, THRISSUR,
          REPRESENTED BY ITS MANAGING PARTNER,
          K.B. JIJU, S/O BALAKRISHNAN
          RESIDING AT KALAPURAYIL HOUSE, ETTUMANA POST,
          KARUVANNUR, THRISSUR DISTRICT, PIN - 680711

          BY ADVS.
          N.MURALEEDHARAN NAIR
          ANTONY JONES


RESPONDENT:

          THE DEPUTY COMMISSIONER OF STATE TAX
          SPECIAL CIRCLE, STATE GOODS AND SERVICES TAX
          DEPARTMENT, KERALA, THRISSUR, PIN - 680004

          BY SR. ADV SMT. THUSHARA JAMES


     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
26.10.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 W.P (C) No.22931/2022                      -2-

                                  JUDGMENT

The petitioner has approached this court seeking the following reliefs.-

"(a) Issue a writ of certiorari or any other appropriate writ or order to quash Ext.P4 passed by the respondent and to allow the petitioner to pay the balance arrears of tax in 36 monthly installments;

(b) Issue a writ of mandamus or any other writ, order or direction directing the respondent not to take any steps to realize the balance amount due under Ext.P1 assessment order and Ext.P2 & P3 demand notices."

2. The petitioner is an assesse under the Kerala General Sales Tax Act,

1963 (hereinafter referred to as the 'KGST Act' for short) engaged in running a bar

attached hotel. For the assessment year 2020-21 the petitioner did not pay the self

assessed tax which according to the petitioner was on account of financial

difficulties. The petitioner approached the respondent who by Ext.P4 granted 6

monthly installments to pay a total sum of Rs.1,30,13,412/-. The first installment

payable on 10-06-2022 was paid by the petitioner. But the subsequent installments

payable on 10-07-2022, 10-08-2022, 10-09-2022 and 10-10-2022 have not been

paid by the petitioner. The last installment is payable on 10-11-2022.

3. The learned counsel appearing for the petitioner would submit that if

the petitioner is given a reasonable time the petitioner will be in a position to pay off

the entire tax due along with the interest demanded.

4. The learned Senior Government Pleader refers to the provisions under

Rule 30B of the KGST Rules and points out that the said Rule is the only enabling

provision permitting the tax payer to pay the amounts due from him in

installments. It is submitted that in the case of the petitioner the amount now

demanded from the petitioner are amounts payable as self assessed tax and no

further demand was imposed on the petitioner at the time of assessment. It is

submitted that grant of further installment will create a bad precedent as there is no

provision permitting the grant of such installment.

5. Having heard the learned counsel for the petitioner and learned Senior

Government Pleader for respondents, I am of the view that considering the fact that

the petitioner is pointing out that he was unable to pay the tax in lump sum or in

installments as granted by Ext.P4 only on account of severe financial difficulties

caused by COVID-19 pandemic which seriously affected by the hotel industry, I am

of the view that notwithstanding the fact that there is no statutory provision to

grant such installment to the petitioner, the petitioner can be granted one further

opportunity to clear the liability in installments. I make it clear that this order shall

not be treated as a precedent and is issued purely as a matter of indulgence and

taking into account the fact that the petitioner was in serious financial difficulties

owing to the COVID-19 pandemic. It is not disputed before me that the petitioner

paid the 1st installment due under Ext.P1. The last installment is payable on 10-11-

2022. Taking into consideration of the above, this writ petition is disposed of in the

following manner;

(i) The petitioner shall pay a sum of Rs.21,68,903/- payable on 10-11-2022 (the

last installment) on or before that date;

(ii) The installments which were not paid on 10-07-2022, 10-08-2022, 10-09-

2022 and 10-10-2022 shall be paid in 3 equal monthly installments starting

from 10-12-2022. The subsequent installments shall be paid on or before 10 th

day of succeeding months along with any further interest that may be

demanded from the petitioner.

It is made clear that no further indulgence will be granted to the petitioner

and if the petitioner does not pay the amount as directed above, it is open to the

respondents to initiate recovery proceedings against the petitioner. If the petitioner

has any dispute regarding the interest charged on turnover tax to be paid for the

parcel sales for the period for which it was permitted until the clarification was

issued by the Government, it is open to the petitioner to raise that dispute in

appropriate proceedings.

Sd/-

GOPINATH P.

JUDGE

AMG

APPENDIX OF WP(C) 22931/2022

PETITIONER EXHIBITS

Exhibit P1 TRUE COPY OF THE ASSESSMENT ORDER PASSED BY THE RESPONDENT UNDER THE KGST ACT FOR THE YEAR 2020-21 DATED 28.04.2022.

Exhibit P2 TRUE COPY OF THE DEMAND NOTICE IN FORM NO.13 PASSED BY THE RESPONDENT DATED 28.04.2022

Exhibit P3 TRUE COPY OF THE DEMAND NOTICE IN FORM NO.24 PASSED BY THE RESPONDENT DATED 28.04.2022

Exhibit P4 TRUE COPY OF THE ORDER PASSED BY THE RESPONDENT DATED 26.05 .2022

Exhibit P5 TRUE COPY OF THE CHALAN EVIDENCING PAYMENT OF TAX DATED 13.06.2022