Interim protection against GST recovery granted on reduced pre-deposit, with coercive steps stayed after compliance.

Interim protection was granted against coercive recovery while the petitioner pursued the statutory appellate remedy under the U.P. GST Act. The Court noted the dispute over assessment orders, the petitioner's complaint that an effective reply could not be filed because relevant documents were uploaded on a different portal, and the earlier failed attempt before the appellate authority. Taking account of the disputed demand and asserted financial difficulty, the Court permitted continuation on compliance with a reduced deposit of Rs. 3.50 crore within two weeks and required filing of the receipt before the Registry, with coercive steps stayed upon compliance.

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Issues: Interim protection against coercive recovery pending availment of the statutory appellate remedy and deposit of a reduced pre-deposit amount.

Analysis: The petition arose from assessment orders challenged on the basis that the petitioner had not been able to file an effective reply after the documents referred to in the show cause notices were uploaded on a different portal. Although the High Court had declined interference on the ground of availability of the appellate remedy under Section 107 of the U.P. Goods and Services Tax Act, 2017 with a 10% pre-deposit, the Court took note of the disputed demand, the earlier unsuccessful attempt before the appellate authority, and the petitioner's asserted financial difficulty. In that backdrop, the Court directed a deposit of Rs. 3.50 crore within two weeks and required production of the receipt before the Registry.

Conclusion: The petitioner was granted interim relief by being permitted to proceed on a reduced deposit, and coercive steps pursuant to the assessment orders were stayed upon compliance.

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