Case Law Details
Ganga Devi Somani Vs State of Gujarat (Gujarat High Court)
Here, from the facts of the case it appears that Company had voluntarily declared its intention to pay tax and 80% of the tax was paid prior to the complaint. The Income Tax Department was instructed regarding the dues from the GST Department and there is no denial to the fact that the Income Tax Department had issued Notice to GST Department for remitting the refund directly to their Department. Certain tough circumstances were also pleaded by the Company regarding demonetisation and implementation of GST, the Textile Industry facing huge financial crisis, which had affected the recovery of tax liability determined by the accused Company of Rs.13,90,27,650/- was not controverted by the Income Tax Department and to that payable tax, as per the self-assessed Return of income, the Company had already paid Rs.7,28, 45,394/- and further amount of Rs.3,83,55,045/- was to be directly paid by the GST Department and as such amount of Rs. 11,12,00,439/- was to be adjusted against GST refund which constitute the 80% of the total tax liability. The accused Company has stated the reasons for the delay and expressed readiness to pay the balance of Rs.2,78,27,21 1/-.
Delayed payment under the provisions of the Act may call for penalty or interest but by no stretch of imagination in the circumstances as pleaded by the petitioners, could be construed as an attempt to evade the tax so as to entail prosecution of the petitioner for the alleged offence of Section 276C(2) of the Act.
FULL TEXT OF THE JUDGMENT/ORDER OF GUJARAT HIGH COURT
1. Rule. Ms. Monali Bhatt, learned Additional Public Prosecutor and Mr. Manish Bhatt, learned Senior Counsel with Ms. Mauna Bhatt, learned advocate, waive service of notice of rule on behalf of respondents Nos.1 & 2 respectively.
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