GST s.74 tax assessment dispute and missing appellate tribunal: writ kept alive with extra 5% pre-deposit ordered

In a writ challenging an assessment order under s.74 of the WB GST Act, the dominant issue was the maintainability and appropriate interim arrangement in the absence of a constituted GST Appellate Tribunal, despite an adverse order under s.107. The HC held that, to balance access to appellate remedy with safeguarding revenue, justice required an additional pre-deposit beyond s.107(6). The petitioner was directed to deposit a further sum equal to 5% of the remaining disputed tax, in addition to the amount already deposited, and to file a compiled paper book of documents earlier filed before the Appellate Authority.

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Issues:
Challenge to order under Section 74 of West Bengal Goods and Services Tax Act, 2017 and appellate order under Section 107 of the same Act. Applicability of appeal under Section 112 of the Act due to absence of constituted Appellate Tribunal. Petitioner's request for exemption from pre-deposit due to Covid-19 impact. State's demand for tax payment or security for entertaining the writ petition.

Analysis:
The High Court of Calcutta addressed a writ petition challenging orders under Sections 74 and 107 of the West Bengal Goods and Services Tax Act, 2017. The petitioner sought to challenge the orders dated 30th March, 2023, and 9th January, 2024, under the said Act. The petitioner contended that an appeal under Section 112 of the Act was maintainable, but due to the non-constitution of an Appellate Tribunal, the writ petition was filed. The petitioner highlighted the impact of the Covid-19 pandemic on their situation, requesting exemption from the pre-deposit required for the appeal under Section 112 to prevent irreparable loss.

The State respondents, represented by Mr. Siddiqui, argued that while the writ petition might be maintainable due to the absence of the Appellate Tribunal, it should not be entertained unless the petitioner paid the determined taxes or provided security. After hearing both parties, the Court decided that the matter deserved a hearing. Considering the financial constraints of the petitioner, the Court directed the petitioner to deposit an amount equal to 5% of the remaining disputed tax with the GST authorities, in addition to the deposit made under Section 107(6) of the Act.

The Court further ordered that if the payment was made within two weeks, any demand raised by the respondents based on the order dated 9th January, 2024, would remain stayed until the end of September, 2024, or until further order, whichever was earlier. Both parties agreed to dispose of the writ petition based on records before the Appellate Authority. The petitioner was instructed to compile all documents filed before the Authority into a paper book, to be submitted before the next hearing, with an advance copy provided to the respondents. The respondents were also directed to ensure that the Appellate Authority's records were presented before the Court at the next hearing, scheduled for July 2024.

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