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High Court considers petition challenging GST Appellate Authority order for A.Y. 2018-19, grants temporary relief pending appeal The High Court entertained a petition challenging an order of the Appellate Authority under Section 73 of the Goods and Services Tax Act, 2017 for A.Y. ...
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High Court considers petition challenging GST Appellate Authority order for A.Y. 2018-19, grants temporary relief pending appeal
The High Court entertained a petition challenging an order of the Appellate Authority under Section 73 of the Goods and Services Tax Act, 2017 for A.Y. 2018-19. As no Tribunal had been constituted yet, the court decided to consider the petition. The petitioner argued that the genuineness of the transaction should not be affected by subsequent events. The petitioner expressed willingness to deposit the required amount for the appeal before the Tribunal. The court granted time for filing affidavits and directed that the balance recovery be stayed if the petitioner deposited 20% of the disputed tax amount, providing temporary relief.
Issues: Challenge to order of Appellate Authority under Section 73 of the Goods and Services Tax Act, 2017 for A.Y. 2018-19.
Analysis: The High Court entertained a petition against the order dated 28.11.2020 passed by the Appellate Authority in Appeal No.80 of 2019 related to proceedings under Section 73 of the Goods and Services Tax Act, 2017 for the period of October, 2018 (A.Y. 2018-19). As no Tribunal had been constituted yet, the court decided to consider the petition at that stage.
The petitioner's counsel argued that the genuineness of the transaction should not be affected by the subsequent cancellation of the selling dealer's registration, as it was valid at the time of purchase of goods/stocks. This argument raised the question of the impact of registration status on the validity of transactions under consideration.
Regarding the deposit of disputed tax liability, the counsel mentioned that 10% had already been deposited as per Section 107(6) of the Act. It was stated that upon depositing 20% of the remaining tax amount, the appeal before the Tribunal (when constituted) would be maintainable. The petitioner expressed willingness to make this deposit.
The Additional Chief Standing Counsel representing the State-respondents accepted the notice and was granted four weeks to file a counter affidavit. The petitioner was given two weeks thereafter to file a rejoinder affidavit. The court directed that, in the interim, the balance recovery would be stayed if the petitioner deposited 20% of the disputed tax amount. This decision aimed to provide temporary relief pending further proceedings.
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