174.            A demand was raised to B amounting Rs.50,000 along with interest. The taxable person paid Rs.10,000 and made an application to pay the balance in 4 equal monthly installments. The installments are made in following manner:

Installment 1 – Rs.10,000 on 1^st month

Installment 2 – Nil

Installment 3 – Rs.20,000 on 3^rd month

The proper officer raised a demand for Rs.40,000 along with interest after non-payment of 2^nd installment. However the taxable person contend that since no further show cause notice was issued whole amount is not due and he may pay the amount of 3^rd  installment along with the 2^nd installment. Further can the taxable person make an appeal regarding the order of officer before appellate authority?

As per section 80, when any default in payment of any one installment is made by taxable person, then the whole outstanding balance becomes due and payable without serving of further notice to taxable person. Thus the applicant on non-payment of 2^nd installment, is liable to pay Rs.30,000 along with interest to the department.

Further as per section 121, the order of payment of tax in installments is a non-appealable, therefore no appeal can be filed.