Denial of Tax Payment in Installments: Gauhati HC stays Coercive Steps

The Gauhati High Court has granted interim relief to a GST-registered trader by staying coercive recovery actions until the tax authorities make a reasoned decision on the trader's request to pay a substantial tax arrear in installments. The petitioner, facing a demand of nearly Rs 5.79 crore, had already paid a portion but sought to clear the remaining Rs 4.74 crore in staggered payments to avoid crippling the business. The court invoked Section 80 of the CGST Act, 2017, which empowers the Commissioner to allow payments in up to 24 monthly installments. The High Court directed the department to dispose of the petitioner's representation within three weeks, emphasizing that a reasoned order is necessary before any harsh recovery measures are taken. This order underscores the importance of considering taxpayer hardship and utilizing statutory provisions for installment payments, balancing revenue collection with business viability.