K.I. International (India) Ltd Vs Principal Secretary / Commissioner of Commercial Taxes (Madras High Court)
Madras High Court held that the object of Section 80 of the Tamil Nadu Goods and Services Tax Act, 2017 (TNGST) is only to benefit an assessee who has been complaint in effecting payment of the admitted tax. Benefit of section 80 not available in case of amount due as per the liability self-assessed in any return.
Facts- The petitioner is a Company and an assessee to State Value Added Tax under the provisions of the Tamil Nadu Goods and Services Tax Act, 2017. There was an inspection in the premises of the petitioner on 11.03.2019 when several discrepancies were noted. The petitioner has unequivocally admitted to those discrepancies even at the time of inspection as revealed from communication dated 22.10.2019 wherein it accedes to the position that there has been non-payment of GST for the period in question.
At the time of inspection, sworn statement has also recorded wherein the petitioner has likewise admitted liability for the period in question.
They conclude with a plea for mercy assuring the respondents that they would remit the amounts due in 24 instalments along with interest. This request has come to be rejected on 31.10.2019 by the Commissioner holding that the facility of grant of instalments under Section 80 is only in respect of disputed tax and not admitted tax.
Conclusion- The object of Section 80 is only to benefit an assessee who has been complaint in effecting payment of the admitted tax.
In this case, while the petitioner has filed returns it has not paid the tax and hence its barred from obtaining benefit under Section 80. The conclusion as aforesaid is supported by a decision of the Orissa High Court in the case of M/s.P.K.Ores Pvt Ltd @ M/s.PK Minings Pvt Ltd v Commissioner of Sales Tax & another [W.P.(c) No.10335 of 2022 dated 06.05.2022].
Impugned order is thus sustained and this writ petition is dismissed. No costs. Connected miscellaneous petition is closed.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
The petitioner is a Company and an assessee to State Value Added Tax under the provisions of the Tamil Nadu Goods and Services Tax Act, 2017. Admittedly, it did not file returns in Form – GSTR-3B for the period September, 2018 – March, 2019. (period in question)
2. There was an inspection in the premises of the petitioner on 11.03.2019 when several discrepancies were noted. The petitioner has unequivocally admitted to those discrepancies even at the time of inspection as revealed from communication dated 22.10.2019 wherein it accedes to the position that there has been non-payment of GST for the period in question.
3. Their explanation was to the effect that the Company had incurred loss on account of the fall in the prices of imported coal and that it was holding huge stock and was compelled to sell the same at unviable prices to avoid demurrage, interest and other dues to the port at Krishnapatanam.
4. At the time of inspection, sworn statement has also recorded wherein the petitioner has likewise admitted liabilitye period in question. The abstract of Goods and Services Tax payable for the aforesaid months has been, computed as per the petitioner and as set out in that communication is as follows:-
“For the month of September, 2018:
