Interim Stay of Coercive Tax Measures: court stayed the impugned order and restrained ledger blocking pending final adjudication.

Petition challenges validity of notifications issued under the CGST regime contending non-compliance with the statutory recommendation requirement and the legality of extending limitation for recovery actions; identical questions are pending in connected proceedings including before the apex court. The court observed those parallel proceedings and granted interim relief to preserve the status quo, staying the impugned administrative order dated 23 August 2024 and restraining coercive measures such as blocking of the electronic credit ledger and attachments pending final disposal of the petition.

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Issues: Whether interim relief in the form of stay of the impugned order dated 23 August, 2024 and suspension of coercive measures should be granted pending final disposal of the petition challenging Notifications issued under Section 168A of the Central Goods and Services Tax Act, 2017.

Analysis: The Court noted that identical legal questions are pending consideration in a related writ petition before this Court and that the point raised is also under consideration before the Supreme Court in connected proceedings. The petition challenges the validity of Notifications issued under Section 168A of the Central Goods and Services Tax Act, 2017 on grounds including alleged non-compliance with the requirement of recommendation by the GST Council and consequent vires of extension of limitation for actions under Section 73 of the CGST Act. In view of the pending proceedings on identical questions in Shyam Udyog and before the Supreme Court in the connected matter, the Court considered it appropriate to grant interim relief to preserve the status quo and prevent irreparable prejudice to the petitioner pending final adjudication.

Conclusion: Interim relief is granted: the impugned order dated 23 August, 2024 is stayed and any coercive measures including blocking of the electronic credit ledger and any attachments are stayed and/or vacated pending final disposal of the petition.

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