2019 (12) TMI 926 - HC - GST

Requirement of pre-deposit - Appeal before the GST tribunal to be filed against the order of first appellate authority (commissioner appeals) - Recovery proceedings - U.P. Goods Service Tax Act, 2017 - petitioner had deposited 10% of the disputed tax liability as provided under sub-section (6) of Section 107 of the Act - HELD THAT - The petitioner is permitted to deposit 20% of the remaining amount of tax in dispute and as soon as the said amount is deposited, the recovery proceedings for the balance amount shall remain stayed as provided under sub-section (9) of Section 112 of the Act. List in the third week of January, 2020.

Summary

Issues:
Challenge to the order of the First Appellate Authority under the U.P. Goods & Service Tax Act, 2017. Constitution of the Appellate Tribunal for a Second Appeal. Deposit of disputed tax liability for appeal competency.

Analysis:
The judgment addresses the challenge to the order of the First Appellate Authority under the U.P. Goods & Service Tax Act, 2017. It notes that a Second Appeal lies before the Appellate Tribunal as per the statute. However, as the Tribunal has not been constituted yet, the petitioner has approached the High Court through the instant petition. The petitioner had initially deposited 10% of the disputed tax liability while filing the First Appeal, as required under sub-section (6) of Section 107 of the Act. The counsel for the petitioner highlights that for an appeal before the Tribunal to be competent, an additional 20% of the remaining disputed tax amount must be deposited, in addition to the amount deposited before the First Appellate Authority. The petitioner expresses readiness to deposit the required 20% of the remaining disputed tax amount.

The Court allows the petitioner to deposit 20% of the remaining disputed tax amount. Upon the deposit of this amount, recovery proceedings for the balance amount are to remain stayed, in accordance with sub-section (9) of Section 112 of the Act. The judgment also instructs the Revenue, already represented, to file a counter affidavit within three weeks. The case is listed for further proceedings in the third week of January 2020.

This detailed analysis of the judgment provides a comprehensive understanding of the issues involved, the legal provisions cited, and the decisions made by the Court regarding the deposit of disputed tax liability for appeal competency under the U.P. Goods & Service Tax Act, 2017.