Home Case Index All Cases GST GST + HC GST - 2022 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (2) TMI 1108 - HC - GSTMaintainability of appeal - failure to comply with the requirement of mandatory pre-deposit - Validity of series of monthly assessment orders - failure to furnish returns in spite of notice under section 46 of CGST Act - HELD THAT - After filing the appeal, which mandates a pre-deposit of 10%, a defect was pointed out that petitioner had not deposited the mandatory predeposit. Petitioner contended that since the order of cancellation of registration issued on 19.03.2021 enabled the petitioner to have his entire assessment orders set aside, the mandatory pre-deposit, if paid, would cause prejudice to the petitioner, especially since the petitioner will stand to lose the court fee payable on the appeal. Ext.P4 appeal was preferred by the petitioner as early as on 11.03.2020. Once the petitioner undertakes the remedy of a statutory appeal under section 107 of the Act, petitioner cannot thereafter turn around and approach this Court seeking reliance upon subsequent events, to avoid the mandatory pre-deposits. Such a practice, if permitted, would render the provisions of the statute redundant. The liability to make the pre-deposit befalls on the date of filing of the appeal, i.e., 11.03.2020 in the instant case. The said liability cannot be eschewed from reckoning on the basis of subsequent events, which as claimed by the petitioner to be beneficial to it. The subsequent events can, at the most, be utilised for availing the appropriate benefits while the appeal is considered on merits but not to overcome the mandate of pre-deposit under section 107 of the Act. This Court is of the view that since the petitioner had already invoked the appellate remedy, the said appeal ought to be pursued as contemplated by law - Petition dismissed.
Issues:
Challenge to monthly assessment orders under section 62 of the Central Goods and Services Tax Act, 2017 based on cancellation of registration and failure to furnish returns. Appeal against assessment orders and non-payment of mandatory pre-deposit for appeal. Analysis: The petitioner contested a series of monthly assessment orders issued under section 62 of the Central Goods and Services Tax Act, 2017. The orders were issued due to the petitioner's alleged failure to furnish returns despite notice under section 46 of the Act. The tax periods involved ranged from November 2017 to May 2019. The petitioner claimed that the assessment orders were illegal as they were issued after a request for cancellation of registration effective from 31.12.2017. The petitioner argued that the registration was indeed canceled by the Proper Officer as per Ext.P6, and hence, the assessment orders were unauthorized. Upon examination, the court noted that the application for cancellation of registration was submitted after the assessment orders were issued. The petitioner had also filed appeals challenging the assessment orders under section 107 of the State Goods and Services Tax Act. However, a defect was identified as the mandatory pre-deposit of 10% was not made. The petitioner contended that the subsequent cancellation of registration would render the pre-deposit unnecessary, preventing prejudice due to loss of court fees. The court emphasized that once an appeal is initiated, subsequent events cannot be used to avoid mandatory pre-deposits as it would undermine statutory provisions. The liability for pre-deposit arises at the time of appeal filing and cannot be circumvented based on later developments beneficial to the petitioner. Considering the above, the court held that since the petitioner had already pursued the appellate remedy, the appeal should proceed as per legal requirements. The court highlighted that the extraordinary remedy of Article 226 of the Constitution of India should not be invoked after opting for an appellate remedy. Consequently, the writ petition challenging the assessment orders was dismissed. The court emphasized the importance of adhering to statutory procedures and timelines in tax matters to maintain the integrity of the legal framework.
|