High Court Allows Tax Appeal Pathway Despite Tribunal Vacancy, Mandates 20% Deposit for Statutory Challenge to Tax Order HC recognized that the order was appealable under CGST/OGST Act Section 112, but the non-constitution of the Appellate Tribunal prevented the statutory ...
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High Court Allows Tax Appeal Pathway Despite Tribunal Vacancy, Mandates 20% Deposit for Statutory Challenge to Tax Order
HC recognized that the order was appealable under CGST/OGST Act Section 112, but the non-constitution of the Appellate Tribunal prevented the statutory appeal remedy. The court disposed of the writ petition by allowing the petitioner to file an appeal after depositing 20% of disputed tax amount, with directions to proceed once the Tribunal is constituted.
Issues involved: Appealability of the order under CGST/OGST Act due to non-constitution of the Appellate Tribunal.
Summary:
Issue 1: Appealability of the order under CGST/OGST Act The High Court acknowledged that the order impugned in the writ petition is appealable under Section 112 of the CGST/OGST Act, 2017. However, due to the non-constitution of the Appellate Tribunal as required under section 109 of the Acts, the petitioner was deprived of the statutory remedy of Appeal and the corresponding benefits under sub-sections 8 & 9 of section 112.
The Government of India, based on the recommendation of the GST Council, issued the Central Goods and Services Tax (Ninth Removal of Difficulties) Order, 2019, which clarified the timeframes for filing appeals in cases where the Appellate Tribunal had not been constituted. Subsequently, the Central Board of Indirect Taxes and Customs issued a circular providing further clarification on the appeal process in such situations.
In light of the Removal of Difficulties Order and the circular, the High Court disposed of the writ petition by granting the petitioner the statutory benefit of stay on depositing a sum equal to 20 percent of the remaining tax amount in dispute. The Court also required the petitioner to file an appeal under Section 112 of the Acts once the Tribunal is constituted and functional, failing which the authorities could proceed further in the matter.
With the above directions and observations, the High Court concluded the matter and ordered the issuance of an urgent certified copy of the order.
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