Payment of interest liability in installments is allowed due to pandemic situation

Aich Brothers Vs Union of India (Gauhati High Court)

The Hon’ble Gauhati High Court in the case of M/s. Aich Brothers v. the Union of India [WP(C)/3222/2021, dated July 13, 2021] directed the assessee to approach the Revenue Department with an application to pay the outstanding dues against the interest liability for delayed filing of returns in Form GSTR-3B, in instalments as a special case considering Covid-19 pandemic situation.

Facts:

This petition has been filed by M/s. Aich Brothers (“the Petitioner”), being aggrieved of cancellation of Goods and Services Act (“GST”) registration of the Petitioner’s firm by the Revenue Department (“the Respondent”) for alleged non-payment of the outstanding amount of around INR 73 lakhs against the interest liability for delayed filing of returns Form GSTR-3B for the period from October 2018 to April, 2020, causing immense difficulties in releasing the payment due to the Petitioner against various contractual works in different organizations.

The Petitioner has contended that the outstanding amount shown on the portal was duly paid and even after the payment by the Petitioner, the registration was not restored. Further, appropriate direction has been sought by the Petitioner to accept the interest liability in instalment due to financial crisis faced during pandemic situation.

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