High Court Resolves GST Payment Dispute, Orders Bank Account De-freezing After Petitioner's Compliance with Section 107 HC ruled in favor of petitioner regarding GST payment dispute. The court directed respondents to de-freeze the petitioner's bank account after finding ...
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High Court Resolves GST Payment Dispute, Orders Bank Account De-freezing After Petitioner's Compliance with Section 107
HC ruled in favor of petitioner regarding GST payment dispute. The court directed respondents to de-freeze the petitioner's bank account after finding compliance with Section 107 of GST Act, specifically noting the petitioner's payment of Rs. 83,000 and undertaking to deposit pending Input Tax Credit. The writ petition was disposed of without costs, mandating account de-freezing within one week.
Issues involved: The issues involved in the judgment are related to GST payment default by a supplier leading to action against the petitioner, freezing of the petitioner's bank account, representation made by the petitioner for de-freezing the account, and the legal requirement for staying proceedings upon payment of a portion of outstanding tax dues.
Judgment Summary:
GST Payment Default and Bank Account Freezing: The petitioner had filed GST Returns, but the supplier failed to pay GST, resulting in action by the respondents and freezing of the petitioner's bank account. A representation was made by the petitioner on 18.10.2023 to de-freeze the account by undertaking to deposit the pending Input Tax Credit (ITC) to the respondents.
Appeal and Payment: The petitioner had also filed an appeal before the Appellate Authority and paid Rs. 83,000 for accepting the appeal, which was pending numbering by the respondent.
Legal Position and Relief Granted: Upon hearing both parties and reviewing the records, it was found that as per Section 107 of the GST Act, if the petitioner pays 10% of the outstanding tax dues along with penalty, the respondent proceedings should be stayed. Since the petitioner had paid Rs. 83,000, the respondent was directed to de-freeze the bank account in accordance with the law. The respondents were instructed to consider the petitioner's representation and de-freeze the bank account upon proof of deposit within one week from the date of the order.
Disposition: The Writ Petition was disposed of with the direction for de-freezing the bank account, and no costs were awarded in this matter.
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