2025 (4) TMI 1232 - HC - GST

Tax Dispute Resolution: Mandatory Deposit Reduced from 20% to 10% Under Amended CGST Act Provisions

HC modified prior order in tax case, reducing mandatory deposit from 20% to 10% following legislative amendment to CGST Act. Court extended compliance ... Prayer for modification of the order dated 14th August 2024 - amendment of Section 112(8) of the CGST Act, 2017 introduced by the Finance (No. 2) Act, 2024 which received the assent of the President on 16th August 2024 and was published in the Gazette of India on that day itself - HELD THAT:- From a perusal of Section 143 of the Finance Act it would transpire that in Section 112 of the CGST Act the words “twenty percent” as appearing in clause (b)(i) have been substituted by the words “ten per cent”. Since this Court by order dated 14th August 2024 had admitted the writ petition and passed an interim order on usual terms as provided in Section 112 of the CGST Act, 2017, the direction for deposit of 20 per cent should be treated as deposit of 10 per cent. Application disposed off. The Calcutta High Court in CAN 1 of 2024 addressed a petition seeking modification of its order dated 14th August 2024 in light of the amendment to Section 112(8) of the CGST Act, 2017 by the Finance (No. 2) Act, 2024. The Court noted that Section 143 of the Finance Act substituted the words 'twenty percent' with 'ten per cent' in clause (b)(i) of Section 112 of the CGST Act. Consequently, the Court held that the prior direction for deposit of 20% should be treated as a deposit of 10%. The time for compliance was extended by two weeks. The Court clarified that if the payment is made within this period, the interim order shall continue until the writ petition's disposal or further order. The application was disposed of accordingly.