petitioners discharge the tax
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Case Title |
PSTS Logistics Private Limited vs The Commissioner of CGST & Central Excise |
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Court |
Madras High Court |
|
Honorable Judges |
Justice C.Saravanan |
|
Citation |
W.P.(MD) Nos.4779 & 4780 of 2022 2022 (4) GSTPanacea 340 HC Madras |
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Judgement Date |
27-April-2022 |
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Council for Petitioner |
T.Lajapathi Roy |
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Council for Respondent |
S.Ragaventhre |
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Section |
Section 83 of CGST Act |
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In Favour of |
In Favour of Assessee |
The Madras High Court bench of Justice C.Saravanan has held that as the petitioner is agreeing to pay consolidated amount of Rs.25,00,000/- per month for discharging/liquidating the tax liability in the respective writ petitions. Court inclined the quash the impugned order and remit the case back to the respondent to pass a speaking order after considering the petitioner’s representation
FACTS OF THE CASE
The petitioner’s group of Companies had allegedly suffered loss in one of its centre to an extent of Rs.50,00,00,000/- as a result of which the petitioner was unable to discharge tax liability under the Goods and Services Tax Act, 2017. Under these circumstances, the respondent attached a bank account of the respective petitioner by issuing GST DRC Form, dated 18.02.2022 and 22.02.2022
The learned counsel for the petitioners submits that the petitioners will liquidate the tax liability over a period of time and therefore, the petitioners be given one more opportunity as petitioners are a going concern and have good business in the Logistics and Port Services.
The learned counsel for the petitioners futher submits that as against the tax liability, the petitioners have also discharged a portion of the tax liability by borrowing the money from the market and will take steps to liquidate the balance by depositing the consolidated amount of Rs.25,00,000/- per month in the ratio of Rs.20,00,000/- and Rs.5,00,000/- each.
On earlier occasion, the petitioners were asked to furnish any security that may be accepted by the respondent at the condition for staying the impugned proceedings. However, the respondents have declined to accept the same stating that the properties which were offered were already the subject matter of the charge with banks and further that the properties also did not belong to the petitioners but to the trust of which one of the Director of petitioners was a trustees.
petitioners discharge the tax
COURT HELD
Considering the facts as recorded, held that that the petitioner is agreeing to pay consolidated amount of Rs.25,00,000/- per month for discharging/liquidating the tax liability in the respective writ petitions,
Court inclined the quash the impugned order and remit the case back to the respondent to pass a speaking order after considering the petitioner’s representation.
However, this order will come into force only after the petitioner’s representation is disposed of by the respondent. The petitioners are therefore directed to give a fresh representation with its offer together with such additional security to protect the interest of the revenue to their satisfaction by 02.05.2006 so that a workable formula for liquidating tax liability of the respective petitioners can be achieved. This exercise shall be carried out by the respondent as expeditiously as possible preferably by 13.05.2022 so that the petitioner will be able to pay salaries to its workers/employees.
These writ petitions stand disposed of
petitioners discharge the tax
ANALYSIS OF THE JUDGEMENT
Considering the fact that the petitioner is agreeing to pay consolidated amount of Rs.25,00,000/- per month for discharging/liquidating the tax liability in the respective writ petitions.
Court inclined the quash the impugned order and remit the case back to the respondent to pass a speaking order after considering the petitioner’s representation
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PSTS Logistics Private Limited
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