This is not a matter which warrants interference or attention of this Court as the liability of the deductors to remit the tax deducted by it to the coffers of the Department, is absolute. The members of the petitoner association are at liberty to approach NLC seeking its indulgence for additional time to remit tax, not/short deducted and it is for NLC to consider the same.
Recovery and Deposition of Tax –– The petitioner association challenged a communication dated 06.02.2021, whereunder the Neyveli Lignite Corporation (NLC) calls upon its Units/Officers to recover the amounts of tax collected by its vendors (members of the petitioner association), but not deposited. In terms of the contract between the members of the petitioner association, who are vendors of NLC and NLC, the consideration paid by the petitioners is inclusive of GST and liability in this regard is to be discharged by members of the petitioner association. As a consequence, NLC appears to have suffered a reversal of the ITC claimed by it and the demand raised has been remitted by it. The court observed that the said communication only seeks to enforce the contract qua NLC and its vendors. The court further observed that this is not a matter which warrants interference or attention of this Court as the liability of the deductors to remit the tax deducted by it to the coffers of the Department is absolute.
Held that:- The Hon’ble High Court dismissed the petition and held that the members of the petitoner association are at liberty to approach NLC seeking its indulgence for additional time to remit tax, not/short deducted and it is for NLC to consider the same.
This is not a matter which warrants interference or attention of this Court as the liability of the deductors to remit the tax deducted by it to the coffers of the Department, is absolute. The members of the petitoner association are at liberty to approach NLC seeking its indulgence for additional time to remit tax, not/short deducted and it is for NLC to consider the same.
Recovery and Deposition of Tax –– The petitioner association challenged a communication dated 06.02.2021, whereunder the Neyveli Lignite Corporation (NLC) calls upon its Units/Officers to recover the amounts of tax collected by its vendors (members of the petitioner association), but not deposited. In terms of the contract between the members of the petitioner association, who are vendors of NLC and NLC, the consideration paid by the petitioners is inclusive of GST and liability in this regard is to be discharged by members of the petitioner association. As a consequence, NLC appears to have suffered a reversal of the ITC claimed by it and the demand raised has been remitted by it. The court observed that the said communication only seeks to enforce the contract qua NLC and its vendors. The court further observed that this is not a matter which warrants interference or attention of this Court as the liability of the deductors to remit the tax deducted by it to the coffers of the Department is absolute.
Held that:- The Hon’ble High Court dismissed the petition and held that the members of the petitoner association are at liberty to approach NLC seeking its indulgence for additional time to remit tax, not/short deducted and it is for NLC to consider the same.