2024 (12) TMI 654 - HC - GST

Petitioner to Deposit 20% of Disputed GST Amount; File Appeal in 30 Days; Stay Effective Until Appeal Decision.

Jaiswal Medical Stores Versus Joint Commissioner (Appeal) State Tax Bilaspur, Assistant Commissioner State Tax (GST) Division-II, Korba, Commissioner State Goods and Service Tax, Raipur, State of Chhattisgarh.

The HC directed the petitioner to deposit 20% of the disputed amount and file an appeal before the GST Appellate Tribunal within 30 days. The statutory ... Maintainability of petition - requirement of pre-deposit - Challenge to order passed by Joint Commissioner Appeal under Chhattisgarh Goods and Service Tax Act, 2017 - HELD THAT:- The Hon’ble Patna High Court in case of M/s Cohesive Infrastructure Developers Pvt. Ltd. [2023 (11) TMI 247 - PATNA HIGH COURT] disposed of the identical cases holding that 'he statutory relief of stay, on deposit of the statutory amount, however in the opinion of this Court, cannot be open ended. For balancing the equities, therefore, the Court is of the opinion that since order is being passed due to non-constitution of the Tribunal by the respondent-Authorities, the petitioner would be required to present/file his appeal under Section 112 of the B.G.S.T. Act, once the Tribunal is constituted and made functional and the President or the State President may enter office. The appeal would be required to be filed observing the statutory requirements after coming into existence of the Tribunal, for facilitating consideration of the appeal.' This writ petition is disposed of with a direction that the petitioner/appellant shall deposit 20% amount claimed in demand notice and shall file the appeal before the appellate tribunal within 30 days from today and as soon as the president or state president enters office of the Goods and Service Tax Appellate Tribunal constituted under the Act of 2017, the appeal that may be decided in accordance with law on its own merits. Petition disposed off. Issues:1. Challenge to order passed by Joint Commissioner Appeal under Chhattisgarh Goods and Service Tax Act, 2017.2. Relief sought by the petitioner in the writ petition.3. Final adjudication based on the appeal and orders passed by the First Appellate Authority.4. Availability of second appeal before the Goods and Service Tax Appellate Tribunal.5. Petitioner's compliance with the statutory amount before filing the appeal.6. Precedents from other High Courts regarding similar issues.7. Extension of the period of limitation by the State Government.8. Directions issued by the Hon'ble Patna High Court in a similar case.The judgment pertains to a writ petition challenging an order passed by the Joint Commissioner Appeal under the Chhattisgarh Goods and Service Tax Act, 2017. The petitioner sought relief to set aside the order dated 17.10.2022 passed by the Joint Commissioner (Appeal) in an appeal case arising from an order dated 06.10.2021 by the Assistant Commissioner of state tax. The First Appellate Authority partly allowed the appeal and affirmed the remaining demand after reducing a specific amount. The petitioner had already deposited 20 percent of the statutory amount required before filing the petition. The scheme of the Act provides for a second appeal before the Goods and Service Tax Appellate Tribunal, but as the Tribunal was not fully constituted, the writ petition was filed.The petitioner relied on judgments from the Hon'ble Patna High Court and the Hon'ble Bombay High Court regarding similar issues and directions given in those cases. The State Government had extended the period of limitation under the Act of 2017. The petitioner requested the court to permit filing an appeal once the Tribunal is fully constituted, as per the judgments of other High Courts. The court, considering the submissions, directed the petitioner to deposit 20% of the amount claimed in the demand notice and file the appeal before the appellate tribunal within 30 days. The appeal would be decided on its merits once the president or state president of the Tribunal enters office. The statutory stay under Section 112 (9) of the Act would remain until the appeal decision. Failure to file the appeal within the prescribed period would allow the state to proceed with recovery of remaining taxes, interest, and penalties. The judgment concluded with these directions, disposing of the writ petition.