Taxpayer Wins Partial Relief: Interim Stay on Tax Demand After Challenging CGST Act Section 107(4) Appeal Restrictions

HC granted interim relief in tax appeal case. Petitioner challenged CGST Act Section 107(4) and a notification restricting appeal filing timelines. Court ordered petitioner to deposit 12.5% of disputed tax amount within a week and provide security for remaining amount. Recovery of tax demand is stayed. Case listed for 21.02.2024 with respondents directed to file reply.

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Issues involved: Challenge to validity of provisions of Section 107(4) of the CGST/RGST Act, 2017 and notification dated 02.11.2023 issued under Section 148 of the Act.

The petitioner challenged the validity of Section 107(4) of the Act, contending that it restricts the appellate authority's right to condone appeal filing delay by only one month. Additionally, the petitioner raised concerns about the notification dated 02.11.2023, arguing that the specified date lacked rationale as it led to appeals being time-barred even for cases where orders were issued after 31.03.2023.

The petitioner expressed willingness to deposit 12.5% of the disputed tax amount as per the notification dated 02.11.2023. The respondents' counsel requested time to provide instructions and file a reply in the matter.

The court granted the respondents' request for additional time and scheduled the petition for listing on 21.02.2024. Meanwhile, if the petitioner deposits 12.5% of the tax in dispute within a week, the recovery or action regarding the remaining amount from the demand dated 21.07.2023 will be stayed. For the remaining amount, the petitioner must provide solvent security to the satisfaction of the Assistant Commissioner, State Tax, Circle-D, Ward-2, Jodhpur Zone-I.

An interim order was issued in the presence of the respondents' counsel, who were informed that they could apply to vacate the interim order after submitting a response to the writ petition.

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