P&H HC allow Spicejet to pay GST dues in installment

Spicejet Limited Vs Excise and Taxation Officer cum Proper Officer (Punjab and Haryana HC)

Current writ petition has been filed by SpiceJet Limited (Petitioner) to quash the Notice bearing No. 1273, ETO/W-1/GGM (North) dated July 27, 2021 which provided to the Petitioner to discharge its statutory tax dues.

The Excise and Taxation Department of Haryana sent a Show Cause Notice (“SCN”) mentioning that recovery proceedings would be initiated against the Petitioner if it does not pay its tax dues after already having been sent a notice for the same.

The Petitioner contended that the operations were curtailed not only because of the impact of Covid which led to acute cash crunch for the company, but also control from the side of the Government due to the Pandemic. It prayed that the department provide an installment facility to clear the tax liabilities.

The Hon’ble High Court of Punjab and Haryana stated that it considers the prayer of the Petitioner to be a fair one. Therefore, it directed the Department to decide the issue on the basis of representation or letter by passing a speaking order on the same.

FULL TEXT OF THE JUDGMENT/ORDER OF PUNJAB AND HARYANA  HIGH COURT

1. This petition has been filed under Article 226 and 227 of the Constitution of India for quashing the notice bearing No. 1273, ETO/W-1/ GGM (North) dated 27.07.2021 (Annexure P1) to discharge its statutory tax dues, or in alternate direct the respondent No.3 to provide installment facility to the petitioner to clear its tax liabilities.

2. The ground taken by the learned counsel for the petitioner is that the operations of the petitioner were curtailed not only because of pandemic but also because of Government control. He states that in this regard a representation/letter has been made to respondent No.3 which is annexed as Annexure P-3 and he would be satisfied, at this stage, if a direction is issued to respondent No.3 to decide the representation/letter (Annexure P-3) filed by the petitioner.

3. Having heard learned counsel appearing for both the parties, we find the prayer of learned Senior counsel for the petitioner to be a fair one. Consequently, we dispose of this writ petition with a direction to the respondent No.3 to decide the representation/letter (Annexure P-3) by passing a speaking order within a period of two weeks from the date of receipt of certified copy of this order.

4. Since the main case has been decided, the pending civil miscellaneous application, if any, also stands disposed of.