Uttarakhand High Court allows dealer to seek Section 80 instalments; mandates decision within two weeks and restrains coercive recovery until application is decided.

Case: M/s Suraj Enterprises v. Assistant Commissioner, State Tax, Rudraprayag
Citation: 2025:UHC:7718-DB
Court/Bench: High Court of Uttarakhand, Nainital
Coram: Hon’ble Chief Justice G. Narendar and Hon’ble Justice Subhash Upadhyay
Date of Decision: 29-08-2025

Whether the petitioner can seek payment of tax dues in instalments under Section 80 of the UGST Act, 2017, and obtain interim protection from coercive recovery during consideration.

Petitioner, a garments trader, held GST registration from 17.11.2022.

Registration was cancelled on 08.05.2024 after SCN dated 27.02.2024.

DRC-01 dated 08.10.2024 raised demand of ₹17,21,389.

Penalty order dated 02.01.2025 required payment by 02.03.2025, failing which recovery would follow; petitioner sought instalments citing financial hardship.

It was held that the petitioner may approach the Commissioner/Competent Authority under Section 80 for payment in instalments. If an application is filed within ten days, the authority shall decide it within two weeks; until such decision, no coercive steps shall be taken. If no application is filed within ten days, recovery may proceed as per law.

Section 80 empowers the Commissioner to grant up to 24 monthly instalments (with Section 50 interest), and courts may protect the taxpayer from coercive recovery pending consideration.

Where recovery is imminent, promptly file a well-supported Section 80 application proposing realistic instalments and evidencing cash flows. Docket timelines carefully: meet the filing window, follow up for a decision, and avoid default to prevent the entire balance becoming immediately recoverable.