2023 (9) TMI 1354 - HC - GST

GST Assessment Challenge: Petitioners Must Deposit 10% Tax, Interim Stay Granted Pending Detailed Review of Rule Amendments

HC admitted writ petitions challenging GST assessment order and rule amendment. Court ordered petitioner to pay 10% of disputed tax within four weeks for ... Input Tax Credit - limitation on Input Tax Credit under Section 16(4) read with Section 39 read with Rule 61(5) of the CGST Rules, 2017 - challenge to amendment of Rule 61(5) by Notification No.49/2019 - Central Tax (CT) dated 09.10.2019 - interim stay subject to pre-deposit - alternate remedyInput Tax Credit - limitation on Input Tax Credit under Section 16(4) read with Section 39 read with Rule 61(5) of the CGST Rules, 2017 - interim stay subject to pre-deposit - Admission of challenge to the Assessment Order dated 25.07.2023 and grant of interim stay of further proceedings subject to deposit of 10% of the disputed tax. - HELD THAT: - The petition impugns the Assessment Order in Form GST DRC-07 dated 25.07.2023 on the ground that the petitioner availed Input Tax Credit beyond the limitation prescribed under Section 16(4) read with Section 39 and Rule 61(5) of the CGST Rules, 2017. The Court admitted the petition and granted an interim stay of all further proceedings on the assessment, conditioned upon the petitioner paying 10% of the disputed tax confirmed by the impugned order within four weeks. The stay is expressly made subject to such compliance. [Paras 4, 5]Petition admitted and interim stay granted on the assessment proceedings, subject to deposit of 10% of the disputed tax within four weeks.Challenge to amendment of Rule 61(5) by Notification No.49/2019 - Central Tax (CT) dated 09.10.2019 - alternate remedy - Admission of challenge to the amendment of Rule 61(5) by Notification No.49/2019 - Central Tax (CT) dated 09.10.2019 in W.P.No.26908 of 2023. - HELD THAT: - The petitioner has separately challenged the amendment to Rule 61(5) by Notification No.49/2019 - Central Tax (CT) dated 09.10.2019. Although an alternate remedy exists, the Court was inclined to admit the writ petition challenging the amendment and took it on file for consideration. The Court coupled the admission of both writ petitions and directed the respondents to file their counter by the next listed date. [Paras 4]Writ petition challenging the amendment to Rule 61(5) admitted; respondents directed to file counter by the listed date.Final Conclusion: Writ petitions challenging the Assessment Order dated 25.07.2023 and the amendment to Rule 61(5) by Notification No.49/2019 admitted; interim stay of further proceedings on the assessment granted subject to payment of 10% of the disputed tax within four weeks; matters listed for further hearing with respondents to file their counter. The petitioner challenged the Assessment Order dated 25.07.2023 in Form GST DRC-07 for availing Input Tax Credit beyond the prescribed limitation. The petitioner also challenged the amendment to Rule 61(5) of the CGST Rules. The court admitted the writ petitions and ordered the petitioner to pay 10% of the disputed tax within four weeks for an interim stay of proceedings. Cases to be listed on 10.10.2023 for further proceedings.