By this Civil Application, the applicant (original writ-applicant) has prayed for the following reliefs :

“(a) The time limit for making payment of balance amount of ₹ 44,77,778 may kindly be extended and the Petitioner may please be permitted to make payment in 6 monthly installments.

(b) Any just and proper order may please be passed in the facts and circumstances of the case for which act of kindness your applicant shall forever pray.”

In the main matter, i.e. the Special Civil Application No.4487 of 2020, an order came to be passed dated 19th February 2020, which reads thus :  

“1. Draft amendment allowed. The same shall be carried out at the earliest.

2. Let Notice be issued to the respondents, returnable on 11th March 2020.

3. Having heard learned counsel appearing for the writ applicant and having gone through the material available on record, we are of the view that the writ applicant is entitled to some interim relief in his favour. The writ applicant has prayed that pending the final disposal of this writ application, the operation, implementation and execution of the impugned garnishes notice and the further proceedings pursuant to the impugned notice dated 3rd February 2020 be stayed.

4. According to the Department, the total liability of the writ applicant on account of interest is to the tune of ₹ 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 ₹ 54,77,778/-.

5. The larger issue involved in this litigation is whether interest on the belated payment of taxes as contemplated under Section 50 of the CGST Act is automatic or whether the same would have been determined after the explanation that may be offered by the assessee and the second issue is whether such liability could be gross tax liability or net tax liability after the adjustment of the input tax liability.  

6. Mr.Sheth, the learned counsel appearing for the writ applicant, submitted that the writ applicant shall deposit an amount of ₹ 10,00,000/- within a period of one week and the balance amount of ₹ 44,77,778/- shall be deposited in four monthly equal installments. The learned counsel further submitted that the writ applicant shall file an Undertaking on oath in this regard by Monday, i.e. on 24th February 2020.

7. In view of the aforenoted statement made by the learned counsel appearing for the writ applicant, we grant interim relief in terms of paragraph No.21E.

8. To be heard with the Special Civil Application No.4025 of 2020.”

Pursuant to the order passed by this Court, referred to above, the writ-applicant has filed an undertaking before this Court, stating as under :

“I, Mr.Viren Rathod, Male, Aged 34 years, having permanent address at 4/234B MGR Road, Palavakkam, Chennai 600041, Tamil Nadu, Managing Director of the Petitioner, undersigned do hereby state on solemn affirmation as under:

1. The Petitioner has challenged the bank attachment garnishee notices dated 17.1.2020 under Section 79 of the Central/Gujarat Goods and Services Tax Act, 2017 (herein after referred to as “the GST Act”) as well as notice dated 3.2.2020 demanding interest on gross tax liability under the GST Act.

2. 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 ₹ 10,00,000 within a period of 1 week and the balance amount of ₹ 44,77,778 shall be deposited in four monthly equal installments.

3. In due compliance with the order of this Hon’ble Court dated 19.2.2020 the Petitioner hereby undertakes on oath before this Hon’ble Court that the Petitioner shall deposit an amount of ₹ 10,00,000 within a period of 1 week and the balance amount of ₹ 44,77,778 shall be deposited in four monthly equal installments commencing from the very next month i.e. March 2020 and such installments will be deposited by the Petitioner with the Respondents latest by the last date of each respective month.”

However, as pointed out by Mr.Sheth, the learned counsel appearing for the writ-applicant, that his client has not been able to adhere and honour the undertaking filed before this Court referred to above, Mr.Sheth has, in his own way, pointed out the difficulties his client had to face during the period of lock-down, on account of which the undertaking could not be complied with.  

We were inclined to take a very strict view of the matter because 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. We could have not only rejected this Civil Application but, in the process, even the interim relief would have stood vacated. However, with a view to give one opportunity to the writ-applicant, we extend 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 in the order dated 19th February 2020.

We make it clear that within a period of six weeks from today if the requisite amount is deposited, then the interim relief granted by this Court in terms of paragraph 21E shall continue.

However, if the requisite amount is not paid within a period of six weeks from today, then the interim relief granted earlier shall stand automatically vacated and it shall be open for the respondents to proceed further with the garnishee notices and the notice dated 3rd February 2020 (Annexure-B to the main matter).

With the above, this Civil Application stands disposed of.