2026 (2) TMI 274 - HC - GST

Tax pre-deposit and conditional lifting of bank attachment for re-adjudication; deposit 50% then fresh merits order

High Court remitted the matter for fresh adjudication conditional on a 50% pre-deposit of the disputed tax to be paid from the petitioner's electronic ... Remand for fresh consideration - pre-deposit for reopening proceedings - adjustment of recovered amounts against pre-deposit - filing of reply to show cause notice as condition for re-adjudication - lifting of bank attachment subject to compliance - power to proceed if stipulations not complied with - final order on merits - HELD THAT:- The case is remitted back to the 2nd respondent to pass a fresh order on merits, subject to the Petitioner depositing 50% of the disputed tax in cash from the Petitioner's Electronic Cash Register within a period of 30 days from the date of receipt of a copy of this order. After due verification, any amount already recovered from the petitioner’s bank account shall be adjusted towards the said 50% of disputed tax. In case the amount already recovered, as stated above, exceeds or satisfies the 50% pre-deposit requirement, no further amount shall be required to be deposited for the purpose of redoing the proceedings. In case the Petitioner complies with the above stipulations, the 2nd Respondent shall proceed to pass a final order on merits and in accordance with law as expeditiously as possible, preferably, within a period of three (3) months of such reply/pre-deposit. Subject to the Petitioner complying with the above stipulations, the attachment of the bank account of the Petitioner shall also stand automatically raised/vacated. It is made clear that bank attachment shall be lifted subject to the deposit of 50% of the disputed tax as ordered above and the Petitioner is not in arrears of any amount barring the amount demanded under the impugned Order. In case the Petitioner fails to comply with any of the stipulations, the 2nd Respondent is at liberty to proceed against the Petitioner to recover the tax in accordance with law as if this Writ Petition was dismissed in limine today. Writ Petition stands disposed of. Issues: Whether the impugned order confirming tax, interest and penalty should be remitted to the adjudicating authority for fresh consideration subject to the petitioner making a pre-deposit and filing a reply, and whether the bank attachment should be vacated on compliance.Analysis: The petition challenges the order confirming demands of tax, interest and penalty. The petitioner asserts that the disputed amounts including tax, interest and penalty have already been recovered from its bank account; the respondent could not confirm recovery. The Court, following its consistent approach in similar matters, conditions interim relief on a protective pre-deposit and filing of a substantive reply to the show cause notice, directs adjustment of amounts already recovered towards the pre-deposit requirement, and requires the adjudicating authority to pass a fresh order on merits after verification and hearing. The Court further provides that on compliance the bank attachment shall stand vacated and that failure to comply will permit the authority to proceed as if the petition were dismissed.Conclusion: The matter is remitted to the adjudicating authority for fresh decision on merits subject to the petitioner depositing 50% of the disputed tax (adjusted by amounts already recovered) and filing a reply within the stipulated time; on such compliance the bank attachment shall be vacated. This disposition is partly in favour of the assessee.