The Kerala High Court has stayed the recovery of the tax amount on the payment of the 20% of the disputed tax as the Goods and Service Tax Appellate Tribunal (GSTAT) is not constituted.
The bench of Justice Gopinath P. has observed that payment of 20% of the disputed tax constitutes stay of further recovery in terms of the provisions contained in Section 112(8)(b) of the CGST/SGST Act and considering the fact that the Appellate Tribunal is likely to be constituted soon, the writ petition will stand disposed of directing that recovery of amounts from the petitioner shall remain suspended till any appeal to be filed by the petitioner before the Tribunal is disposed of.
The stay shall be subjected to the filing of the appeal by the petitioner before the Tribunal within a period of one month from the date on which the Tribunal is constituted.
Background
The petitioner/assessee filed the writ petition on account of the fact that the petitioner is unable to avail the remedy under Section 112 of the Central Goods and Services Tax/State Goods and Services Tax Act, 2017 (CGST/SGST Act) against Appellate Order. It is the case of the petitioner that 20% of the disputed tax has already been remitted by the petitioner.
As per Section 112 of the CGST Act, every person has statutory remedy of appeal against the order passed by the first appellate authority or by a revisional authority, before the Tribunal.
Conclusion
The Court has quashed the recovery notice.
Case Title: Hyness Glass House Versus The State Tax Officer
Case No.: WP(C) NO. 4601 OF 2024
Date: 03/09/2024
Counsel For Petitioner: Alan Priyadarshi Dev, S.Sajeevan
Counsel For Respondent: Jasmine M M