GST appeal pre-deposit triggers statutory stay, making attachment of property unsustainable and requiring release of encumbrance.

Once the prescribed pre-deposit for a statutory GST appeal is made, recovery of the balance demand is stayed by operation of the appellate scheme. An attachment of immovable property made before expiry of the appeal period and in disregard of that statutory stay is unsustainable. The property was therefore entitled to be released from attachment, and the encumbrance entry had to be removed.

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Issues: Whether the attachment of the petitioner's immovable property could be sustained after the statutory appeal was filed and the requisite pre-deposit was made under the GST appellate scheme.

Analysis: The petitioner had filed an appeal against the order in original within the prescribed period and had also remitted the required 10% of the disputed tax demand. On such pre-deposit being made, recovery of the balance demand stands stayed by operation of the appellate provision. The attachment was effected before the expiry of the period available for appeal and without regard to the statutory stay that followed the pre-deposit.

Conclusion: The attachment was contrary to the statutory scheme and could not be sustained. The petitioner was entitled to release of the attachment and deletion of the encumbrance entry.

Final Conclusion: The writ petition succeeded and the challenge to the attachment was accepted, with consequential directions for release of the property from attachment and removal of the encumbrance entry.

Ratio Decidendi: Once the prescribed pre-deposit for a statutory GST appeal is made, recovery of the balance demand is deemed to be stayed, and any attachment of property made in disregard of that statutory stay is unsustainable.

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