Statutory pre-deposit and recovery stay applied on further deposit of disputed GST liability

A taxpayer was permitted to make the further statutory deposit of 20% of the remaining disputed tax where the second appellate tribunal under the U.P. GST regime had not yet been constituted. Because 10% of the disputed liability had already been deposited at the first appeal stage, the Court treated the additional deposit as sufficient under the statutory scheme and directed that recovery of the balance would remain stayed on such deposit.

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Issues: Whether the petitioner could be permitted to deposit 20% of the remaining amount of disputed tax and whether recovery of the balance amount would remain stayed on such deposit.

Analysis: The petition was filed because the second appellate tribunal under the U.P. Goods and Services Tax Act, 2017 had not yet been constituted. The petitioner had already deposited 10% of the disputed tax liability while filing the first appeal. The Court accepted the request to make the further statutory deposit and indicated that, upon deposit of 20% of the remaining disputed tax, recovery of the balance would remain stayed in terms of the statutory scheme governing second appeal.

Conclusion: The petitioner was permitted to deposit 20% of the remaining disputed tax, and recovery of the balance amount was ordered to remain stayed on such deposit.

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