Petitioner | M/s P.K. Ores Pvt. Ltd. M/S. PK Minings Pvt.Ltd.
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Respondent | Commissioner of Sales Tax & Another |
Decision by | Orissa High Court |
Date of order or Judgement | 6- May- 2022
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Citation no. | 2022(5) GSTPanacea 44 HC Orissa W.P.(C) No. 10335 of 2022 |
Hon’ble Judge | Justice Jaswant Singh Justice Murahari Sri Raman |
Decision | In Favour of Revenue
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Only 24 Installments Are Allowed-The order of the Commissioner of CT & GST is well-reasoned & needs no indulgence by this Court as there was no scope or occasion to allow thirty-six instalments.
Only 24 Installments Are Allowed-Facts of the Case
Only 24 Installments Are Allowed-The case of M/s P.K. Ores Private Limited / M/S. PK Minings Private Limited vs. Commissioner of Sales Tax & Another, the writ applicant has filed its monthly GST return in Form GSTR-3B belatedly.
While undertaking the scrutiny of said self-assessed returns furnished for each tax periods as per Section 39, the Officer noticed that the petitioner has filed the returns belatedly.
The petitioner prayed before the Commissioner of CT&GST, Odisha to allow it to discharge interest demand to the tune of Rs.68,15,506/-in instalments.
Argument Before Court
Only 24 Installments Are Allowed-Petitioner’s Contention
Only 24 Installments Are Allowed-The learned counsel for the petitioner has made submission that the Commissioner of CT & GST being vested with power under Section 80 of the OGST Act ought not to have rejected its application in Form GST DRC-20 filed in consonance with Rule 158 of the OGST Rules and facilitated the petitioner by allowing it to discharge the liability towards the huge burden of interest.
Hereby Section 80 of the CGST Act provides that “On an application filed by a taxable person, the Commissioner may, for reasons to be recorded in writing, extend the time for payment or allow payment of any amount due under this Act, other than the amount due as per the liability self-assessed in any return, by such person in monthly instalments not exceeding twenty four, subject to payment of interest under section 50 and subject to such conditions and limitations as may be prescribed.”
Only 24 Installments Are Allowed-Respondent’s Argument
Only 24 Installments Are Allowed-The CT & GST Department submitted that when the statute requires doing certain things in certain way, the thing must be done in that way or not at all and, thereby other methods or modes of performance are impliedly and necessarily forbidden.
The Commissioner of CT & GST has rightly rejected the prayer of the petitioner in as much as the claim is contrary to the express language of Section 80 of the OGST Act.
Application in Form GST DRC-20 filed before the Commissioner of CT & GST, it is contended by him that the rejection of prayer for allowing the petitioner 36 (thirty-six) instalments is just and proper.
It is suggested that the well-reasoned order of the Commissioner of CT & GST needs no indulgence by this Court inasmuch as there was no scope or occasion to allow thirty-six instalments as sought for by the petitioner. Doing so would be contrary to the statutory mandate.
Orissa High Court Held
Only 24 Installments Are Allowed-The Hon’ble HC held that Since interest is a part of tax and such tax being belated payment in respect of self-assessment, Section 80 of the OGST Act clearly excludes grant of instalment under the present fact-situation.
However, the Commissioner is not conferred with power to allow such instalment in respect of amount due as per self-assessment return(s) furnished.
Section 80 empowers the Commissioner to grant permission only to the taxable person to make payment of any amount due on instalment basis, on an application filed electronically in Form GST DRC-20 as prescribed under Rule 158.
The Commissioner after considering the request by the taxable person in Form GST DRC-20 and report of the jurisdictional officer, may issue an order in Form GST DRC-21, allowing the taxable person either extend the time or allow payment of any amount due under the Act on instalment basis.
This provision, therefore, applies to amounts due other than the self-assessed liability shown in any return. The instalment period shall not exceed 24 months. The taxable person shall also be liable to pay prescribed interest on the amount due from the first day such tax was due to be payable till the date tax is paid.
In view of proviso to Section 80, if default occurs in payment of any one instalment, the taxable person would be required to pay the whole outstanding balance payable on such date of default itself without further notice. There was, therefore, no scope for the Commissioner of CT & GST to entertain application for grant of instalment.
In view of the above discussion, the Commissioner of CT & GST is justified in rejecting the prayer of the petitioner to deposit the interest levied on account of belated deposit of admitted tax as per self-assessed returns furnished in terms of Section 39 read with Section 59 of the CGST/OGST Act in instalment under Section 80 read with Rule 158.
The writ petition, thus, being devoid of any merit, is dismissed.
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