In the case of M/s P.K. Ores Private Limited / M/S. PK Minings Private Limited vs. Commissioner of Sales Tax & Another, the writ applicant has filed its monthly GST return in Form GSTR-3B belatedly. While undertaking the scrutiny of said self-assessed returns furnished for each tax periods as per Section 39, the Officer noticed that the petitioner has filed the returns belatedly. The petitioner prayed before the Commissioner of CT&GST, Odisha to allow it to discharge interest demand to the tune of Rs.68,15,506/- in instalments.

The learned counsel for the petitioner has made submission that the Commissioner of CT&GST being vested with power under Section 80 of the OGST Act ought not to have rejected its application in Form GST DRC-20 filed in consonance with Rule 158 of the OGST Rules and facilitated the petitioner by allowing it to discharge the liability towards the huge burden of interest.

Section 80 of the CGST Act provides that “On an application filed by a taxable person, the Commissioner may, for reasons to be recorded in writing, extend the time for payment or allow payment of any amount due under this Act, other than the amount due as per the liability self-assessed in any return, by such person in monthly installments not exceeding twenty four, subject to payment of interest under section 50 and subject to such conditions and limitations as may be prescribed.

The issue raised in the present case was:

Whether the commissioner of CT&GST is justified in rejecting the prayer of the petitioner to deposit the interest levied on account of belated deposit of admitted tax as per self-assessed returns furnished in terms of Section 39 read with Section 59 of the CGST/OGST Act in instalment under section 80 read with rule 158?

It has been observed by the Hon’ble Court that interest is a part of tax and such tax being belated payment in respect of self-assessment, Section 80 of the OGST Act clearly excludes grant of instalment under the present fact-situation. Section 80 empowers the Commissioner to grant permission only to the taxable person to make payment of any amount due on instalment basis, on an application filed electronically in Form GST DRC-20 as prescribed under Rule 158. However, the Commissioner is not conferred with power to allow such instalment in respect of amount due as per self-assessment return(s) furnished. There was, therefore, no scope for the Commissioner of CT&GST to entertain application for grant of instalment.

The Hon’ble High Court of Orissa in the matter of M/s P.K. Ores Pvt. Ltd./M/S. PK Minings Pvt. Ltd. vs. Commissioner of Sales Tax & Another, has held that the Commissioner of CT&GST is justified in rejecting the prayer of the petitioner to deposit the interest levied on account of belated deposit of admitted tax as per self-assessed returns furnished in terms of Section 39 read with Section 59 of the CGST/OGST Act in instalment under Section 80 read with Rule 158. The writ petition, thus, being devoid of any merit, is dismissed.

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