Interim protection against GST recovery may continue where the Appellate Tribunal is not constituted and pre-deposit conditions are met.

Interim protection against recovery under an appellate order may be granted where the Appellate Tribunal has not yet been constituted and the statutory pre-deposit framework remains the operative route for stay. The text notes reliance on the GST circular explaining pre-deposit and stay under the CGST Act, and records that a prima facie case supported temporary relief. It further contemplates continuation of protection on payment of 10% of the balance tax in dispute, in addition to the amount already deposited under the appellate pre-deposit provision. The writ petition was directed to proceed on affidavits.

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Issues: Whether interim protection should be granted against recovery pursuant to the appellate order in view of the non-constitution of the Appellate Tribunal and the statutory pre-deposit framework.

Analysis: The writ petition challenged the appellate order and relied on the GST circular clarifying the procedure for pre-deposit and stay of recovery under Section 112 of the Central Goods and Services Tax Act, 2017. Taking note that the Appellate Tribunal had not yet been constituted and that a prima facie case was made out, interim protection was considered appropriate. The order also contemplated continuation of protection upon payment of 10% of the balance tax in dispute in addition to the amount already deposited under Section 107(6).

Outcome: An unconditional stay of the appellate demand was granted for two weeks, with continuation of the interim protection on compliance with the stipulated deposit requirement, and the writ petition was directed to proceed on affidavits.

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