Pre-deposit under Section 112(8) requires verification; if confirmed, recovery stays under Section 112(9) and excess sums refunded.

Where a taxpayer contends that the statutory pre-deposit under Section 112(8) was made, authorities must accept and verify a representation of payment; if verification confirms the pre-deposit, recovery must be treated as stayed under Section 112(9) and any amounts recovered in excess of the cumulative pre-deposits required by the statutory scheme (including Section 107(6) and Section 112(8)) must be refunded. The directive requires administrative consideration of the taxpayer's representation and verification of payments before enforcing recovery, with restitution where excess recovery is established.

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Issues: Whether, if the petitioner has made the pre-deposit required under Section 112(8) of the Act of 2017, the respondent GST authorities are obliged to treat recovery proceedings as stayed under Section 112(9) and refund any amounts recovered in excess of statutory pre-deposits at appellate stages.

Analysis: The Court considered the petitioner's contention that a sum equivalent to the statutory pre-deposit under Section 112(8) of the Act of 2017 was deposited and that, consequently, recovery should not have been effected. The judgment frames the legal framework by reference to the pre-deposit obligations under Section 107(6) and Section 112(8) and the stay of recovery mandated by Section 112(9). The Court did not adjudicate the factual question whether the pre-deposit was actually made but directed that the petitioner be permitted to make an appropriate representation to the GST authorities setting out the payment and that the authorities verify the same. The Court required the GST authorities, if satisfied that the statutory pre-deposit was made, to give effect to Section 112(9) and to refund any sums recovered beyond the cumulative amounts required to be deposited under Section 107(6) and Section 112(8).

Conclusion: The petitioner is entitled to have his representation considered and, if the GST authorities are satisfied that the pre-deposit under Section 112(8) has been made, the stay under Section 112(9) must be respected and any sums recovered in excess of the cumulative pre-deposits under Section 107(6) and Section 112(8) shall be refunded (in favour of the assessee).

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