2025 (8) TMI 469 - SCH - GST

Supreme Court stays recovery under Section 122(1) CGST Act, allows 25% deposit pending appeal under Section 107

Mukesh Kumar Garg Versus Union Of India & Ors.

The SC granted leave and stayed recovery of the disputed amount under Section 122(1) of the CGST Act, 2017, subject to the appellant depositing 25% of the ... Applicability of Section 122(1) of the CGST Act, 2017 to the petitioner as he is a non-taxable person - retrospective application of provisions of Section 122 (1A) of the Act which came into force w.e.f. 01.01.2021 - for the Assessment Years 2017- 2020 - It was held by High Court that 'this Court is of the view that the present writ petition is not liable to be entertained. If the Petitioner wishes to urge any other issues, the same can be considered in the appeal, if the Petitioner chooses to avail of the appellate remedy under Section 107 of the CGST Act.' HELD THAT:- Leave granted. In the meanwhile, there shall be stay on the recovery of the amount directed to be deposited provided the appellant deposits 25% of the demand before the GST Department either through Electronic Ledger or through Cash Ledger. The Supreme Court of India, through an order by Justices Pankaj Mithal and Prasanna B. Varale, addressed two primary contentions regarding the Central Goods and Services Tax Act, 2017 ('the Act'). The petitioner argued that Section 122(1) of the Act is inapplicable as he is a non-taxable person, and that Section 122(1A), effective from 01.01.2021, cannot be applied retrospectively to Assessment Years 2017-2020. The Court granted leave and stayed recovery of the amount subject to the petitioner depositing 25% of the demand with the GST Department via Electronic or Cash Ledger.