A two-judge bench of the Gujarat High Court has allowed the payment of GST Arrears in ten instalments.
The division bench comprising of Justice Akil Kureshi and Justice b N Karia directed the petitioners M/s Indus Projects Ltd, to pay the tax dues of Rs. 3.85 crores in instalments by paying 20% amount initially and five per cent of the remaining amount between 1st and 5th day of every month.
The petitioners prayed before the Court that due to financial difficulties, they requested the department to allow them to pay the arrears in instalments. However, the authorities rejected the claim and passed an order without assigning reasons. The counsel appeared for the petitioners submitted that the departmental circular permits the authority in the exercise of its discretion to grant suitable instalments when financial hardship is made out.
While delivering an oral order, Justice Akil Kureshi directed to send a notice to the department and said that “On the condition that before the returnable date the petitioner deposits 20% of the outstanding amount and further continues to deposit 5% thereof between 1st and 5th of every month thereafter until any other order is passed, there shall be stay against coercive recoveries of the dues. Direct service is permitted.”
The matter further posted to 10th October 2018.
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