2023 (12) TMI 289 - HC - GST

Seeking direction to respondent to consider the representation of the petitioner dated 18.10.2023 - HELD THAT - The respondent directed the petitioner to pay a sum of Rs. 4,34,522/-. According to the provision of Section 107 of Goods and Services Tax Act, 2017, if the petitioner paid 10% of the outstanding tax dues along with penalty, the respondent proceedings will be automatically stayed. The said legal position was also confirmed by the learned counsel for the respondents. In such view of the matter, in the present case, since the petitioner had paid a sum of Rs. 83,000/-, the respondent is supposed to have de-freeze the bank account of the petitioner as per Section 107 of the Act. The respondents are directed to consider the representation of the petitioner dated 18.10.2023 and de-freeze the petitioner's bank account, upon the production of proof of deposit of Rs. 83,000/- or 10% of the total demand made by the respondent - Petition disposed off.

Summary

Issues involved:
The issues involved in the judgment are related to GST payment default by a supplier leading to action against the petitioner, freezing of the petitioner's bank account, representation made by the petitioner for de-freezing the account, and the legal requirement for staying proceedings upon payment of a portion of outstanding tax dues.

Judgment Summary:

GST Payment Default and Bank Account Freezing:
The petitioner had filed GST Returns, but the supplier failed to pay GST, resulting in action by the respondents and freezing of the petitioner's bank account. A representation was made by the petitioner on 18.10.2023 to de-freeze the account by undertaking to deposit the pending Input Tax Credit (ITC) to the respondents.

Appeal and Payment:
The petitioner had also filed an appeal before the Appellate Authority and paid Rs. 83,000 for accepting the appeal, which was pending numbering by the respondent.

Legal Position and Relief Granted:
Upon hearing both parties and reviewing the records, it was found that as per Section 107 of the GST Act, if the petitioner pays 10% of the outstanding tax dues along with penalty, the respondent proceedings should be stayed. Since the petitioner had paid Rs. 83,000, the respondent was directed to de-freeze the bank account in accordance with the law. The respondents were instructed to consider the petitioner's representation and de-freeze the bank account upon proof of deposit within one week from the date of the order.

Disposition:
The Writ Petition was disposed of with the direction for de-freezing the bank account, and no costs were awarded in this matter.