GST recovery stay under circular: writ disposed with liberty to comply with undertaking and pre-deposit requirements.

Where a first appeal has been rejected as time-barred and the appellate tribunal is not yet functional, the GST circular provides a mechanism to keep recovery in abeyance on filing the prescribed undertaking/declaration and making the required pre-deposit within time. The HC disposed of the writ petition without examining the merits of the appellate order, holding that no live issue survived in view of the circular and the State's non-opposition. It granted liberty to the petitioner to comply with the circular requirements, and on such compliance the remaining recovery would stay in terms of the circular and the statutory pre-deposit regime.

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Issues: Whether the writ petition should be disposed of by granting the petitioner liberty to comply with the GST circular and, on such compliance, obtain the benefit of stay of recovery pending the constitution of the appellate tribunal.

Analysis: The appeal had been dismissed by the appellate authority on the ground of delay, and the petitioner sought relief in the writ proceedings by placing reliance on the governing GST circular dealing with recovery where the first appeal has been disposed of and the appellate tribunal is yet to become operational. The Court noted that the circular provided a specific mechanism, including filing of an undertaking/declaration and payment of pre-deposit within the prescribed time, for keeping recovery in abeyance until the tribunal becomes functional. In view of those guidelines and the absence of opposition from the State, the Court found no surviving issue requiring adjudication in the writ petition.

Conclusion: The writ petition was disposed of with liberty to the petitioner to comply with the circular requirements, and on such compliance the recovery of the remaining demand would remain stayed in terms of the circular and the statutory pre-deposit regime.

Final Conclusion: The matter was finally closed without adjudicating the merits of the challenged appellate order, while preserving the petitioner's right to secure interim protection by following the prescribed GST mechanism.

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