2021 (2) TMI 1119 - HC - GST

Cancellation of registration of selling dealer - submission of petitioner is that at the time of purchase of goods/stocks, the registration of the selling dealer was valid - HELD THAT - Matter requires consideration. Learned counsel for the petitioner submits that 10% of the disputed tax liability has been deposited in terms of Section-107(6) of the Act, the appeal before the Tribunal (when constituted) would be maintainable upon deposit of 20% of the remaining tax amount. The petitioner is willing to deposit that amount - Learned Standing Counsel has accepted notice on behalf of State-respondents. He prays for and is granted four weeks' time to file counter affidavit. Petitioner shall have two weeks thereafter to file rejoinder affidavit. List thereafter.

Summary

Issues:
Challenge against appellate authority's order under Section 74 of the Goods and Services Tax Act, 2017.

Analysis:
The judgment pertains to a petition challenging an order of the appellate authority under Section 74 of the Goods and Services Tax Act, 2017. As no Tribunal has been constituted yet, the High Court is entertaining the petition. The petitioner's counsel argues that the genuineness of the transaction should not be impacted by the subsequent cancellation of the selling dealer's registration. The petitioner has deposited 10% of the disputed tax liability as per Section 107(6) of the Act and is willing to deposit the remaining 20% for the appeal before the Tribunal. The learned Standing Counsel representing the State-respondents has been granted four weeks to file a counter affidavit, with the petitioner given two weeks thereafter to file a rejoinder affidavit.

The matter requires consideration by the court, especially regarding the impact of the cancellation of the selling dealer's registration on the transaction's genuineness. The petitioner's willingness to deposit the required amount for the appeal before the Tribunal demonstrates their commitment to pursuing the case further. The stay on the balance recovery, subject to the petitioner depositing 20% of the disputed tax amount, indicates the court's interim decision to prevent immediate recovery pending further proceedings. The timelines provided for filing affidavits ensure a structured process for both parties to present their arguments effectively before the court. The order reflects a fair and procedural approach by the court in dealing with the issues raised in the petition challenging the appellate authority's decision under the GST Act.