Assessee allowed to adjust the tax dues payable in 24 monthly installments with ITC against the last installment

Last updated: 13 December 2021

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Quick Summary

The Meghalaya High Court has ruled that JUD Cements Ltd. can pay a tax liability of over INR 43 crore in 24 monthly instalments. Importantly, any adjustment for input tax credit (ITC) or outcomes from pending appeals will only be applied against the final instalment. Interest on the remaining tax due will be calculated on a reducing balance basis after all instalments are paid.

Court :
Meghalaya High Court

Brief :
The Hon'ble Meghalaya High Court in JUD Cements Ltd. & Anr. v. the Commissioner, CGST, Shillong [WP (C) No. 344/2021 dated December 7, 2021] held that adjustment of Input Tax Credit ("ITC") with tax dues to be paid off by the assessee in 24 equal or nearly equal monthly installments on account of the orders passed in the pending appeals and on account of ITC, if any, against the last installment. Further held that, the assessee will also be liable to pay interest on reducing balance basis on the tax due component of the amount less any adjustment on account of appellate orders or ITC.

Citation :
WP (C) No. 344/2021 dated December 7, 2021

Daily Limit Reached