Taxpayer Wins Appeal Rights: Bank Guarantee Suffices for Challenge, Statutory Protection Upheld Under Section 107(6)

HC ruled that taxpayer could file appeal without additional pre-deposit after securing initial penalty amount via bank guarantee. The court directed appeal to be heard on merits within two weeks, emphasizing statutory right to appeal under Section 107(6) of WBGST/CGST Act. Government's objections were overruled, and petitioner's right to appeal was affirmed without demanding further financial preconditions.

---

---

Issues:
1. Release of amount from bank guarantee for appeal pre-deposit
2. Acceptance of appeal without pre-deposit
3. Entitlement to appeal without further pre-deposit

Analysis:
The petitioner filed a writ petition seeking direction to release Rs.5,22,500 from the bank guarantee for the appeal pre-deposit under the WBGST/CGST Act, 2017. The petitioner had earlier challenged an order under Section 129(3) of the Act and was directed to deposit Rs.10 lakhs within 10 days for the appeal. The petitioner secured the penalty amount and got goods released. The petitioner requested modification of the order, stating no further payment was necessary for the appeal. However, the government pleader argued against relief, citing non-existent consignor and consignee. A Coordinate Bench had passed a conditional order on the matter, which the government pleader urged not to be interfered with.

Upon hearing both parties, the judge noted the previous order directing the petitioner to pay Rs.10 lakhs and secure the balance via bank guarantee for the appeal. The petitioner had fulfilled these conditions and got the goods released, establishing the right to appeal without additional payment as per Section 107(6) of the Act. The judge opined that while the petitioner might not be entitled to a refund, the right to appeal could not be withheld for failure to make further pre-deposit. Consequently, the judge ruled that the appeal, if filed within two weeks, should be heard and decided on its merits without requiring any additional pre-deposit.

In conclusion, the writ petition was disposed of with directions for all parties to act based on the official order copy downloaded from the Court's website.

---