Petitioner granted interim protection, State to clarify appeal filings, automatic stay on remaining amounts. The Court granted interim protection to the petitioner, staying the implementation of garnishee notices for GST dues until the next hearing. The State was ...
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Petitioner granted interim protection, State to clarify appeal filings, automatic stay on remaining amounts.
The Court granted interim protection to the petitioner, staying the implementation of garnishee notices for GST dues until the next hearing. The State was directed to respond to the affidavit and explain the discrepancy in statements regarding appeal filings. The Court noted that the appeals were filed within the prescribed timeframe and that the required deposits were made, resulting in an automatic stay of the remaining amounts under Sections 6 & 7 of Section 107 of the JGST Act. The State was given time to file a supplementary counter-affidavit by 15.04.2021, and the matter was adjourned for the next hearing on 19.04.2021.
Issues: Challenge to notice dated 14.12.2020 in FORM GST DRC-13 for payment of GST dues. Appeal filed against the order. Challenge to another FORM GST DRC-13 issued to a third party. Filing of additional appeal with pre-deposit. Interpretation of Sections 6 & 7 of Section 107 of JGST Act. Discrepancy in statements regarding appeal filing. Stay of garnishee notices. Requirement of response to affidavit. Stay of impugned garnishee notices. Filing of supplementary counter-affidavit.
Analysis: The petitioner challenged a notice dated 14.12.2020 in FORM GST DRC-13 directing the petitioner's banker to pay Rs. 38,14,026.24 as GST dues. An appeal was filed against this order with a pre-deposit of Rs. 1,78,222. During the case, another FORM GST DRC-13 was issued to a third party for Rs. 85,65,368.24, which included the amount from the previous order. The petitioner filed an additional appeal on 02.03.2021 with a pre-deposit of Rs. 2,10,703. The petitioner argued that appeals were filed within the prescribed timeframe under Section 107 of JGST Act, and as per Sections 6 & 7 of Section 107, a deposit results in an automatic stay of the remaining amount.
The State initially claimed no appeal was filed against the order dated 13.10.2020, but GSTN confirmed an appeal was filed on 09.01.2021. The State requested time to respond to GSTN's affidavit. The Court noted that the appeal filed on 09.01.2021 had not been dismissed for non-compliance, and the appeal filed on 02.03.2021 was under consideration, with the required deposit made. Considering the provisions of Section 107(6) and (7) of the JGST Act and that the subsequent notices covered both appeals, the Court granted interim protection to the petitioner. The State was directed to respond to the affidavit and explain the discrepancy in statements made.
The Court stayed the implementation of both impugned garnishee notices until the next date, allowing the State time until 15.04.2021 to file a supplementary counter-affidavit in response to GSTN's affidavit. The matter was adjourned and scheduled for the next hearing on 19.04.2021.
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