Tax Demand Challenge Succeeds: 10% Deposit Required, Stay Granted with Procedural Flexibility for Petitioner's Relief

HC allowed writ petition challenging tax demand, finding it maintainable due to absence of Appellate Tribunal. Court directed petitioner to deposit 10% of remaining disputed tax and granted four-week unconditional stay of demand, subject to procedural compliance. Interim relief continues until petition disposal, with liberty to mention after affidavit exchange.

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The Calcutta High Court, presided by Raja Basu Chowdhury, J., entertained a writ petition challenging the appellate order dated 9th December 2024 under Section 107 of the CGST/WBGST Act, 2017, which arose from an order under Section 74 dated 18th December 2023. Noting that the Appellate Tribunal is yet to be constituted, the Court held that the writ petition is maintainable.Relying on the petitioner's prima facie case and the mandate of Section 112(8) of the Act, the Court directed the petitioner to deposit 10% of the remaining disputed tax amount, in addition to the amount already deposited under Section 107(6). The Court granted "an unconditional stay of the demand made in Form GST APL 04 dated 9th December, 2024, for a period of four weeks." The interim stay shall continue until disposal of the writ petition or further order, provided the additional deposit is made within four weeks. The Court ordered exchange of affidavits with timelines and granted liberty to mention after affidavit exchange. The order emphasizes adherence to procedural timelines and reliance on official court records.

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