HC extended the time period by a further period of six weeks to enable the applicant to comply with the undertaking and deposit the amount as directed
Section 50 of the CGST Act, 2017— Interest – The petitioner prayed for extending the time limit for making payment of balance amount and he be permitted to make payment in 6 monthly installments. According to the Department, the total liability of the writ applicant on account of interest is to the tune of Rs.1,01,78,188/-. On the other hand, according to the writ applicant, at the most, his liability can be determined to the tune of Rs.54,77,778/-. This Hon’ble Court by interim order dated 19.2.2020 has granted interim order in terms of Para 21E of the Special Civil Application subject to the Petitioner filing an undertaking that it shall deposit an amount of Rs.10,00,000 within a period of 1 week and the balance amount of Rs.44,77,778 shall be deposited in four monthly equal installments. The Petitioner undertook to deposit an amount of Rs.10,00,000 within a period of 1 week and the balance amount of Rs.44,77,778 shall be deposited in four monthly equal installments commencing from the March 2020. The petitioner submitted that his client has not been able to adhere and honour the undertaking because of the difficulties faced during the period of lock-down. The court observed that once an undertaking on oath is filed before this Court, it is expected of the person giving such undertaking to comply with the same as the non-compliance would entail the consequences of contempt.
Held that:- The Hon’ble High Court directed the petitioner to deposit the amount within a period of six weeks, if the requisite amount is not paid within a period of six weeks, then the interim relief granted earlier shall stand automatically vacated.