In OP (Tax) No. 13 of 2023 -KER HC- Kerala High Court eases Pyramid Architects and Engineers’ burden by allowing instalment payment of outstanding tax
Justice A. Muhamed Mustaque & Justice Shoba Annamma Eapen [06-07-2023]

Read Order: Pyramid Architects and Engineers V. State Tax Officer, Works Contract, State GST Department, Palakkad & Ors

Chahat Varma

New Delhi, October 5, 2023: The Kerala High Court has allowed Pyramid Architects and Engineers (petitioner) to pay the outstanding tax demanded by the assessing authority in instalments.

Briefly stated, the petitioner had filed the present petition to challenge a conditional order issued by the Kerala Value Added Tax Appellate Tribunal in Kozhikode. The order directed the petitioner to deposit 10% of the outstanding tax for the years 2014-15 and 2015-16 and furnish a simple bond for the remaining amount to the satisfaction of the assessing authority within one month from the date of receiving the order.

The petitioner argued that the conditional order imposed by the tribunal was onerous, and the petitioner lacked the financial means to fulfil it. They also pointed out that when filing their initial appeals, they had already deposited 20% of the demanded amount. Therefore, they requested that the newly imposed condition be set aside.

On the contrary, the Senior Government Pleader argued that since the petitioner had lost the case in the first appeal, the Appellate Tribunal's decision to require the petitioner to pay only 10% of the outstanding tax demanded was reasonable.

After careful consideration of the arguments presented by both parties and a thorough examination of the order, the division bench of Justice A. Muhamed Mustaque and Justice Shoba Annamma Eapen concluded that there was no justification for intervening in the order. The Appellate Tribunal had provided sufficient rationale for issuing the conditional order.

However, the bench opined that the petitioner should be granted the option to pay the outstanding tax in instalments.

Accordingly, the court directed the petitioner to remit the amount demanded as per the conditional order in three equated monthly instalments. The court also emphasized that all coercive proceedings against the taxpayer would be kept in abeyance in order to enable the taxpayer to repay the amount as directed.