The Madras High Court ruled that the object of Section 80 is only to benefit an assessee who has been complainant in effecting payment of the admitted tax.
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. Admittedly, it did not file returns in Form – GSTR-3B for the period September, 2018 – March, 2019. 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. 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.
Submissions
The petitioner thus argues that the form GSTR I does not comprise a return and thus the exclusion that is set out under Section 80 would not apply to it.
Counsel for the petitioner attempted to state that the order under Section 80 has been passed even prior to the assessment having been framed under Section 73.
Decision
The single judge bench of Justice Anita Sumanth said that accepting the argument of the petitioner would tantamount to a situation wherein a delinquent assessee, one who has omitted to file a return of monthly turnover but has filed the prescribed return reflecting taxable sales, is allowed the benefit under Section 80, of an installment scheme. The object of Section 80 is only to benefit an assessee who has been complaint in effecting payment of the admitted tax.
It was observed by the court that while the petitioner has filed returns it has not paid the tax and hence it is barred from obtaining benefit under Section 80.
Case title: M/s.K.I.International (India) Ltd. v/s The Principal Secretary / Commissioner of Commercial Taxes and Anr.
Citation: W.P.No.10379 of 2020 and W.M.P.No.12624 of 2020
