The Calcutta High Court has unconditional stay of the demand of the Appellate order for a period of two weeks on the ground that the Goods and Service Tax Tribunal (GSTAT) is not yet constituted.
The bench of Justice Rajarshi Bharadwaj has observed that in the event, the petitioner makes payment of 10% of the balance amount of tax in dispute, in addition to the amount already deposited in terms of Section 107(6) of the GST Act, within two weeks from date, the interim order passed herein, shall continue till the disposal of the writ petition or until further order, whichever is earlier.
The writ petitioners/assessees has challenged the appellate order. The petitioners relied on Circular No.224/18/2024-GST dated 11th July, 2024 issued by the Ministry of Finance debarring the guidelines for recovery of outstanding dues in cases wherein first appeal has been disposed of, till Appellate Tribunal comes into operation.
The circular says that in order to facilitate the taxpayers to make the payment of the amount of pre-deposit as per sub- section (8) of Section 112 of CGST Act, and to avail the benefit of stay from recovery of the remaining amount of confirmed demand as per sub-section (9) of Section 112 of CGST Act, it is clarified that in cases where the taxpayer decides to file an appeal against the order of the appellate authority and wants to make the payment of the amount of pre-deposit as per sub- section (8) of Section 112 of CGST Act, he can make the payment of an amount equal to the amount of pre- deposit by navigating to Services >> Ledgers>> Payment towards demand, from his dashboard.
The circular further stated that the taxpayer would be navigated to Electronic Liability Register (ELL) Part-II in which he can select the order, out of the outstanding demand orders, against which payment is intended to be made. The amount so paid would be mapped against the selected order and demand amount would be reduced in the balance liability in the aforesaid register. The amount deposited by the taxpayer will be adjusted against the amount of pre- deposit required to be deposited at the time of filing appeal before the Appellate Tribunal.
The court held that since, the petitioner has been able to make out a prima facie case, there shall be an unconditional stay of the demand of the Appellate order, for a period of two weeks from date.
Case Details
Case Title: Rockfield Mining and Minerals Pvt. Ltd. & Anr. Vs. The State of West Bengal & Ors.
Case No.: WPA 23544 of 2024
Date: 13.02.2025
Counsel For Petitioner: H. K. Ray
Counsel For Respondent: A. Ray
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