2019 (8) TMI 1152 - HC - GST

Validity of assessment order - KGST Act - case of petitioner is that either the mere filing of appeal or mere pendency of appeal does not amount to granting stay by the appellate authority - HELD THAT - The appellate authority/2nd respondent considers and disposes of Ext.P3 application as early as possible, preferably within two months from the date of receipt of copy of this judgment - The recovery, including realisation of any amount due towards tax arrears, which is pending before the appellate authority is stayed for two months. Respondents issue communications recalling the attachment of bank account of petitioner if attached.

Summary

Issues:
1. Delay in disposing of stay petition pending appeal.
2. Protection of appellant's interest during the appeal process.

Issue 1: Delay in disposing of stay petition pending appeal

The petitioner filed an appeal against the assessment order and a rectified order made under the KGST Act. The petitioner also submitted a stay petition to prevent the assessing officer from taking steps to recover the tax amount under challenge. The petitioner argued that the delay in considering the stay petition could render the appeal ineffective if the tax amount is recovered before the appeal is decided. The petitioner contended that the law provides for protecting the appellant's interest during the appeal process by expeditiously deciding on stay petitions. The court examined the relevant documents and found that there was a case for issuing directions to the appellate authority to dispose of the stay petition promptly.

Issue 2: Protection of appellant's interest during the appeal process

After reviewing the appeal and stay petition, the court decided to issue necessary directions to the appellate authority. The court ordered the appellate authority to consider and dispose of the stay application within two months from the date of the judgment. Additionally, the court directed that any recovery actions, including the realization of tax arrears pending before the appellate authority, be stayed for two months. The respondents were also instructed to communicate the recall of any attachment of the petitioner's bank account if already attached. This judgment aimed to ensure the protection of the appellant's interest during the appeal process and to prevent any adverse consequences due to delays in deciding on stay petitions.

This summary provides a detailed analysis of the judgment, highlighting the issues of delay in disposing of stay petitions pending appeal and the protection of the appellant's interest during the appeal process. The court's decision to issue necessary directions to expedite the disposal of the stay petition and to stay recovery actions pending appeal demonstrates a commitment to ensuring a fair and effective appeal process for the petitioner.