2025 (5) TMI 302 - HC - GST

Tax Authority's Input Tax Credit Challenge Halted: 10% Deposit Requirement Imposed for Interim Relief

HC stayed tax authority's order challenging input tax credit, conditioned on petitioner depositing additional 10% of tax liability within three weeks. ... Manifest error in affirming the order passed by the Assessing Authority as to the conduct of the petitioner in availing the input tax credit - Petitioner submits that since no Tribunal as contemplated under the Goods and Services Tax, 2017 has been constituted under the Act, petitioner has no other forum but to approach this Court seeking appropriate writ invoking its extraordinary jurisdiction under Article 226 of the Constitution - HELD THAT:- Matter requires consideration - Let counter affidavit by filed by learned Standing Counsel within four weeks'. Rejoinder affidavit, if any, may be filed within two weeks' thereafter. List this case on 8th July, 2025. The Allahabad High Court, through Hon'ble Ajit Kumar, J., addressed the petition challenging the affirmation by the First Appellate Authority of the Assessing Authority's order regarding the petitioner's conduct in availing input tax credit, which imposed liability with interest and penalty. The petitioner contended that since no Tribunal under the Goods and Services Tax Act, 2017 exists, the Court's extraordinary jurisdiction under Article 226 is invoked. The petitioner had deposited 10% of the tax liability and agreed to deposit an additional 10%. The Court stayed the operation of the impugned orders dated 20th February 2024 and 31st August 2024 on condition that the petitioner deposits the further 10% within three weeks, clarifying that failure to do so would render the interim stay inoperative. The Court directed the filing of counter and rejoinder affidavits and listed the matter for further hearing on 8th July 2025.