Jud Cements Ltd. vs . The Commissioner Of Central ...
2022 Latest Caselaw 193 Meg

      Serial No. 3
      Supplementary List

                      HIGH COURT OF MEGHALAYA
                          AT SHILLONG
WP (C) No.158/2022
                                                  Date of Order: 04.05.2022
Jud Cements Ltd.          Vs.     The Commissioner of Central Goods and
                                  Service Tax and Central Excise & ors
Coram:
          Hon'ble Mr. Justice Sanjib Banerjee, Chief Justice
          Hon'ble Mr. Justice W. Diengdoh, Judge

Appearance:
For the Petitioner              : Mr. K. Paul, Sr.Adv with
                                  Mr. S Thapa, Adv
For the Respondents             : Dr. N. Mozika, ASG with

Ms. S. Rumthao, Adv

i) Whether approved for reporting in Yes/No Law journals etc.:

ii) Whether approved for publication in press: Yes/No

JUDGMENT: (per the Hon'ble, the Chief Justice) (Oral) This petition has been filed for, in effect, modification of an order

dated December 7, 2021 as subsequently altered by an order of March 23,

2022 in WP (C) No.344 of 2021.

2. This may be a case of the petitioner herein having cried wolf

without justifiable cause in the past for the petitioner's more worthy

subsequent plea to be somewhat diluted by the previous conduct. By the

order dated December 7, 2021, the petitioning assessee was permitted to

pay the entire outstanding amount of Rs.43,49,50,071/- in 24 equal or

nearly equal monthly installments beginning December 15, 2021 and

payable by the 15th day of the 23 succeeding months. On the petitioner's

subsequent application, the original order was modified on March 23,

2022. Paragraph 6 of the order of March 23, 2022 is of relevance in the

context:

"6. Accordingly, and only by way of a one-time measure, that may not be used as an instance for any further indulgence by the applicant, the time to pay the money due on March 15, 2022 is extended till April 5, 2022 without interfering with the payments due thereafter in terms of the order of December 7, 2021."

3. The excuse that the petitioner has come with this time is a squall

that hit the East Jaintia Hills region in the third week of April, 2022. The

petitioner relies on a report of the assessed damage appearing at page 45

of the papers. The so-called independent assessor indicated that the cost of

repairing would be in excess of Rs.4 crore and the repairing work would

take three months if the weather conditions are suitable.

4. The prayer made is for a three-month moratorium of the payment

to be made in terms of the order dated December 7, 2021 as modified on

March 23, 2022. In other words, the petitioner seeks an order that will

require the petitioning assessee not to make the installment payments in

the month of April, 2022 - for which the assessee is already in default -

and for the months of May and June, 2022. The petitioner suggests that the

amounts due for these three months would be added to the total amount

due on June 30, 2022 for the remainder of the installments to provide for

greater payments than originally envisaged and without seeking more

installments than already provided for.

5. The conduct of the petitioning assessee does not inspire any

confidence. Notwithstanding the submission made on behalf of the

petitioner that no further latitude would be sought, it appears to the Court

that the prayer for moratorium or for delaying the further payment will be

made by the petitioner on a periodic basis as parties of such kind prey on

the generosity of the Court and remain incorrigible defaulters.

6. However, in view of the apparent damage to the petitioning

assessee's manufacturing facility, a moratorium for a period of two months

is granted. That is to say that the payment that was due in April, 2022 will

not be deemed to have been defaulted and the payment due in May, 2022

need not be paid by the 15th day of this month. The amount due in April,

2022 must be paid along with the amount due in June, 2022 and the amount

due in May, 2022 must be paid along with the installment due in July,

2022. The prayer for spreading out the overdue amount over the rest of the

installments is expressly declined. The amounts for the months of April

and May, 2022 will have to be made good in the manner indicated.

7. Upon the first default of the petitioning assessee in making the

payment in terms of this order and without further reference to this Court

or other authority, it will be open to the Department to take immediate

appropriate steps in accordance with law and the petitioning assessee will

be deemed to be in default of the entire amount then due.

8. The previous orders of December 7, 2021 and March 23, 2022

are modified as indicated. It is unlikely that any subsequent prayer for

further latitude may be granted to the petitioning assessee, come hell or

high water.

9. WP (C) No.158 of 2022 is disposed of.

10. There will be no order as to costs.

       (W. Diengdoh)                                 (Sanjib Banerjee)
           Judge                                       Chief Justice


Meghalaya
04.05.2022
"Lam DR-PS"