The Punjab and Haryana High Court has asked the tax department to consider SpiceJet’s plea to make pending GST payments in instalments.
BusinessLine had earlier reported that the tax department had slapped a show- cause notice on the low-cost carrier for a default in payments to the tune of ₹80 crore. The department had also asked SpiceJet to give details of all the movable and immovable assets of the airline as a precursor to recovery proceedings in case the payment wasn’t made in a week.
The Airline’s request
SpiceJet had requested for an option to pay in instalments and if dues could be adjusted against possible refunds owed by the GST department to the airline.
“The difference prior to filing of the petition and today is that earlier, all requests of SpiceJet — for instance, requesting for an opportunity of discharging the GST liability in 24 monthly instalments — fell on deaf ears and the GST Department issued notice without addressing the concerns of SpiceJet raised in various letters and correspondence,” Anuj Dewan, Counsel appearing on behalf of SpiceJet, told BusinessLine.
“Having heard learned counsel appearing for both the parties, we find the prayer of learned Senior counsel for the petitioner to be a fair one,” the Court order stated while disposing-off the writ filed by the airline.
The court has asked the tax department to decide on the representation/letter submitted by SpiceJet “by passing a speaking order within two weeks from the date of receipt of certified copy of this order.”
“They (GST) department were conveniently avoiding a conversation with SpiceJet. The said order basically means that the GST department will either have to accept or reject their proposal but there will not be any further silence from the Department,” Dewan said.
SpiceJet will be entitled to the grounds of rejection if the Department proceeds to reject their offer, which will ultimately be open for judicial scrutiny, he explained.