Interim Stay on GST Collection Vacated: Applicant Allowed to Deposit Disputed Amounts Under Protest Pending Supreme Court Decision

The HC vacated its earlier ad interim relief that had stayed the Gujarat Authority for Advance Ruling's order. The applicant requested this modification to allow collection and deposit of disputed GST amounts under protest, pending the SC's decision in a related appeal. The Court permitted the applicant to proceed according to law, with recovered amounts to be deposited subject to the final outcome of the main petition. This decision acknowledged that the fate of the present writ application would be governed by the SC's eventual ruling in the connected matter where leave to appeal had been granted.

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Issues:
1. Modification of order dated 23.10.2019 to collect and deposit disputed tax amount under GST Act under protest.
2. Challenge to order dated 19.12.2018 in Special Civil Application No.5343 of 2018.
3. Pending decision by Supreme Court in Special Civil Application No.5343 of 2018 affecting present writ application.

Analysis:
1. The Civil Application sought modification of the order dated 23.10.2019 to allow the collection and deposit of the disputed tax amount under the GST Act under protest, subject to the outcome of the main petition. The Coordinate Bench had granted ad interim relief staying the operation of the impugned order dated 20.08.2019 by the Gujarat Authority for Advance Ruling. The applicant requested the vacation of the ad interim relief due to the pending decision in the Supreme Court related to a previous order. The Court allowed the Civil Application, vacating the ad interim relief and directing the applicant to proceed according to the law, with the amount recovered and deposited subject to the final outcome of the main matter.

2. The issue raised in the present writ application had been considered in Special Civil Application No.5343 of 2018, where an order dated 19.12.2018 was passed. This order was later challenged by the Union of India before the Supreme Court, which granted leave to appeal on 09.08.2019. The fate of the present writ application was said to be governed by the decision of the Supreme Court in this matter. As the hearing in the Supreme Court was expected to take time, the applicant decided to start recovering the required amount from customers and deposit it with the relevant Authority. Consequently, the ad interim relief previously granted in favor of the writ applicant was requested to be vacated. The Court acknowledged the connection between the pending Supreme Court decision and the present writ application, allowing the Civil Application and vacating the ad interim relief.

3. In another related matter, Special Civil Application No.19071 of 2019, the Court noted that the issue was pending before the Supreme Court, awaiting the final verdict. The matter was to be notified once an appropriate note was filed by the counsel representing the writ applicant. This decision was made in consideration of the ongoing proceedings and the importance of the final judgment from the Supreme Court in relation to the issues raised in the various civil applications.

This detailed analysis covers the modifications sought, the impact of the pending Supreme Court decision on the present writ application, and the related matters pending before the Court, providing a comprehensive overview of the judgment and its implications on the legal proceedings.

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