2026 (3) TMI 1238 - SCH - GST

Interim protection in GST assessment disputes where access to records and statutory pre-deposit requirements affect the right to appeal.

Interim protection in GST assessment disputes may be sought where the assessee alleges inability to access uploaded documents and faces financial ... Interim deposit - Statutory pre-deposit - ex-parte assessment orders - Whether interim relief should be granted by directing a deposit and restraining coercive steps in respect of the assessment orders. Interim deposit as condition for grant of interim relief - HELD THAT:- The Court noted that the petitioner claimed inability to participate in the assessment proceedings because documents referenced in show cause notices were uploaded on a portal the petitioner could not access, and that the High Court had declined writ relief observing an alternative remedy of statutory appeal with a pre-deposit. In exercise of its interlocutory jurisdiction and having heard learned senior counsel, the Court directed an interim scheme: the petitioner shall deposit a specified sum as an interim pre-deposit, the department shall acknowledge receipt in writing, and on production of the receipt the Registry will issue notice and list the matter. Pending compliance with the deposit direction, no coercive steps shall be taken pursuant to the assessment orders. The order preserves the respondents' ability to contest the appeals after compliance while protecting the petitioner from immediate coercive enforcement. [Paras 16, 17, 18] Petitioner directed to deposit Rs.3.50 crore within two weeks; department to acknowledge receipt; on production of receipt Registry to issue notice returnable on 11.05.2026; no coercive steps to be taken pending the deposit. Final Conclusion: The Court granted interim relief by directing a specified interim deposit and a concomitant stay of coercive action pending compliance, and ordered issuance of notice upon production of the deposit receipt. Issues: Whether interim relief should be granted permitting the petitioner to challenge ex-parte assessment orders and stay coercive action by directing a reduced pre-deposit in view of inability to access documents and financial constraints under Section 107 of the U.P. Goods and Sales Tax Act, 2017.Analysis: The petitioner challenged two assessment orders alleged to be ex parte due to inability to access documents that the department had undertaken to upload. The High Court declined to entertain writ remedy on the ground of availability of the statutory appeal under Section 107 of the U.P. Goods and Sales Tax Act, 2017 which requires a pre-deposit of 10% of the principal. The petitioner faced practical inability to access the uploaded documents on the portal relied upon by the department and asserted financial constraints in making the full statutory pre-deposit. The Court considered the adequacy of the alternative statutory remedy, the petitioner's inability to participate in the assessment proceedings, and the need to preserve the petitioner's right to challenge the assessments without immediate coercive enforcement.Conclusion: The Court directed the petitioner to deposit Rs.3.50 crore with the concerned department within two weeks, ordered the department to acknowledge receipt in writing, directed production of the receipt before the Registry and issuance of notice returnable on 11.05.2026, and stayed coercive steps under the two assessment orders pending compliance. The interim relief is granted in favour of the petitioner (assessee) subject to the directed deposit.