2021 (6) TMI 153 - HC - GST

Maintainability of petition - refund of CGST - fixation of Special rate - HELD THAT - The Commissioner of CGST, Guwahati (respondent no.2) shall dispose of the application submitted by the petitioner, received in the office of the Commissioner on 05.03.2021, for fixation of special rate within a period of 4(four) weeks from the date of receipt of the certified copy of the order. It is provided that till such decision is taken, no coercive measure be taken against the petitioner pursuant to the demand notice dated 28.12.2020 and recovery notice dated 27.01.2021 impugned in this writ petition. List the matter on 19.05.2021.

Summary

Issues:
Challenge against demand for interest and penalty, maintainability of the writ petition

Analysis:
The petitioner, a manufacturing unit, filed a writ petition challenging the legality of an impugned notice seeking a refund of CGST, interest, and penalty under the Central Excise Act. The petitioner sought relief from coercive actions by the respondents until the application for a special rate was adjudicated. The Senior counsel referenced previous orders granting similar relief and requested a similar order in this case. The respondents argued that the impugned notices were show-cause notices, raising the issue of maintainability, which was left open by the Court.

The Court issued a notice of motion returnable on a specified date and directed the petitioner to provide an extra copy of the writ petition to the respondents. Pending further orders, the Court decided to follow previous orders and directed the Commissioner of CGST to decide on the application for a special rate within four weeks. Until a decision was made, no coercive measures were to be taken against the petitioner based on the impugned notices. Additionally, the CGST authorities were instructed not to insist on compliance with a specific remittance notice until the next listing date.

In conclusion, the Court addressed the issues raised by the petitioner regarding the demand for interest and penalty, ensuring a fair process by providing relief from coercive actions until the application for a special rate was decided. The Court also considered the maintainability of the writ petition, leaving it open for further examination. The case was scheduled for the next listing date to monitor the progress of the matter.