In a recent ruling, the Kerala High Court has allowed an assessee under the Kerala Value Added Tax ( KVAT ) to remit the tax arrears in ten equal instalments.
The petitioner-Company claimed to have stopped the business for lack of resources. The department-initiated recovery proceedings against the assessee to realize the tax arrears. The petitioner, therefore, approached the High Court seeking permission to pay the entire tax arrears through instalments.
On behalf of the department, it was submitted that the petitioner cannot insist on paying the arrears of tax in instalments and financial hardship cannot be ground for it. She further submitted that the authorities will, however, accommodate the petitioner’s request by granting ten instalments. Not more.
Allowing the petition, Justice Dama Seshadri Naidu said that “I, therefore, dispose of the writ petition holding that the petitioner shall pay the entire arrears of tax in ten equal monthly instalments beginning from 01.09.2018. If the petitioner fails to pay any instalment within the stipulated time, the respondent authorities can proceed without recourse to this Court.”
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