2023 (12) TMI 1402 - HC - GST

Tax Assessment Upheld: Veneer Dealer's Challenge Rejected, 20% Deposit Requirement Confirmed as Valid Legal Condition

HC upheld tax assessment order against veneer dealer. Appellant challenged assessment for multiple financial years, but court found no illegality in 2nd ... Challenge to assessment orders for the financial years 2013-14 to 2017-18 under the CGST and SGST Acts - assessment orders were passed without granting sufficient time to him to furnish the balance 'C' Form and denying the concessional rate of tax - violation of principles of natural justice - HELD THAT:- The 2nd respondent, at the time of consideration of the stay application, prima facie found that the appellant could not produce any documents to substantiate his contention that he is entitled to concessional rate of tax. In the said circumstances, the 2nd respondent chose to impose the condition while granting stay. The tax liability comes to more than ₹ 45,00,000/-. There are no illegality in the order of the 2nd respondent imposing a condition to grant stay. Appeal dismissed. In the judgment delivered by the Kerala High Court, the appellant, a registered dealer in the veneer business, challenged the assessment orders for the financial years 2013-14 to 2017-18 under the CGST and SGST Acts. The appellant's appeals to the Joint Commissioner (Appeals) were dismissed, leading to second appeals and petitions for condonation of delay and stay before the 2nd respondent. The 2nd respondent granted a stay on the tax demand conditionally, requiring the appellant to deposit 20% of the tax demand. The appellant contested this condition, arguing insufficient time was provided to submit the balance 'C' Form and claiming entitlement to a concessional tax rate. However, the 2nd respondent found no supporting documents for the appellant's claim. The court found no illegality in the condition imposed by the 2nd respondent and dismissed the appeal, upholding the requirement to deposit 20% of the tax demand.