In a writ petition challenging a recovery notice for ₹28,87,154, representing interest on delayed GST ( Goods and Services Tax ) payments for the financial year 2019-20, the Madras High Court has granted relief by allowing payment in ten monthly instalments.
The petitioner, Priya Associates submitted that while the entire tax liability had been settled, the financial crisis hindered their ability to immediately pay the interest amount. They requested time for payment, citing severe financial constraints.
The respondent’s counsel pointed out that the petitioner could seek relief under Section 80 of the GST Act, which allows for instalment-based payments.
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However, the petitioner added that Section 80 of GST Act does not provide interim protection from recovery proceedings, compelling them to approach the court.
Considering the facts that the taxes had already been paid, Justice Mohammed Shaffiq directed the petitioner to pay the interest in ten equal instalments, beginning on December 15, 2024, with subsequent payments on the 15th of each following month.
The court ordered that the attachment of the petitioner’s assets be lifted upon payment of the first instalment. However, any default in payments would render the entire amount immediately due, allowing the authorities to resume recovery proceedings as per the law.
The writ petition was disposed of with these directions. Mr.P.V.Sudakar and Mr.C.Harsha Raj appeared for the petitioner and respondents respectively.
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