In a significant ruling, the Kerala High Court has provided clarity on the authority responsible for permitting the payment of sales tax dues in installments under the Kerala General Sales Tax Act 1963 and Rules. Justice Dinesh Kumar Singh, presiding over the case, emphasized that the Sales Tax Officer is the empowered assessing authority for this purpose.
The case at hand revolved around a petitioner who challenged the orders issued by the Tahsildar, seeking the recovery of sales tax dues along with interest accrued from August 2022 to August 2023, related to the sale of Indian Man Made Foreign Liquor.
The petitioner’s counsel argued that payments could be made in installments as per Rule 30(B) of the Kerala General Sales Tax Rules, 1963, and under Section 23(3) of the Kerala General Sales Tax Act, 1963. The petitioner had previously submitted an application to the District Collector, seeking permission to pay the tax amount with interest in fifty installments.
However, Rule 30(B) of the Kerala General Sales Tax Rules, 1963, clearly specifies that the assessing authority, in this case, the Sales Tax Officer, can grant the dealer permission to pay the tax amount in six installments based on their request. The court examined this rule and made it explicit that the District Collector does not possess the authority to grant such instalments for the payment of tax dues.
In light of this interpretation, the court permitted the petitioner to submit a request to the Sales Tax Officer for the facility to pay sales tax dues in installments. The court’s order stated, “In view thereof, the petitioner is permitted to move an application before the 4th respondent for availing 6 instalments as per the provisions of Rules 30(B) of the KGST Rules within a period of ten days from today.”
This ruling reaffirms the importance of understanding the specific roles and responsibilities of authorities under tax laws, ensuring proper compliance with tax obligations while offering taxpayers a mechanism for manageable payment of dues.
Written by- Abdullah khan, College name – USLLS, 3rd semester as an intern under Legal Vidhiya
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