Case Law Details
Farooque Construction Vs Kerala State Goods And Service Tax (Gst) (Kerala High Court)
Introduction: In the case of Farooque Construction versus Kerala State Goods and Service Tax (GST), a partnership registered under Central GST/Kerala GST Act faces repercussions for failing to fulfill its tax liability settled under the Amnesty Scheme. This article delves into the background, the petitioner’s actions, and the court’s ruling on the matter.
Background of the Petitioner: The petitioner, a partnership registered under the Central GST/Kerala GST Act, sought the settlement of tax dues under the Amnesty Scheme in 2020.
Amnesty Scheme Application and Settlement: The petitioner’s application was considered by the GST authority, resulting in the settlement of a total liability of Rs.6,08,561/-. The petitioner was granted installments for payment, with the first installment set at 20% of the settled amount.
Default in Payment: Despite paying the initial installment of Rs.1,21,713/-, the petitioner failed to make subsequent payments as per the agreed schedule. As of 2023, the liability remains unsettled, violating the terms of the Amnesty Scheme.
Impugned Notice and Court’s Decision: The court, considering the petitioner’s default and the passage of time since the Amnesty order in 2020, found no grounds to interfere with the notice dated 25.10.2023. Consequently, the writ petition filed by Farooque Construction was dismissed.
Conclusion: The case of Farooque Construction serves as a cautionary tale highlighting the importance of adhering to settlement terms under Amnesty Schemes. The court’s decision reinforces the consequences of defaulting on agreed-upon payments, emphasizing the need for businesses to fulfill their tax obligations promptly. This article sheds light on the legal proceedings and outcomes, offering insights into the implications for businesses navigating the complexities of GST regulations and amnesty programs.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
1. The petitioner is a partnership from registered under the provisions of Central GST/Kerala GST Act and a dealer under the provisions of the said Act and Rules.
2. The petitioner had approached GST authority for settlement of tax dues under the Amnesty Scheme promulgated on 22.06.2020. The petitioner’s application was considered by the department and total liability of the petitioner came to be settled at Rs.6,08,561/- for the tax dues. The petitioner was also granted installments to settle the arrears of GST as determined under the Amnesty Scheme. The petitioner was directed to pay the first installment of not less than 20% of the settled amount within 30 days of receipt of intimation and the balance in four installments.
3. According to the petitioner he has paid the first installment of Rs.1,21,713/-. However, thereafter he has not paid any amount to the department. The Amnesty order was passed on 22.06.2020. We are in 2023 and the petitioner has
failed to discharge the liability even the liability was settled under the Amnesty Scheme. This Court does not find any ground to interfere with the impugned notice dated 25.10.2023.
Therefore, the present writ petition is hereby dismissed.
