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2023 (11) TMI 1335 - HC - GSTRefusal to grant an interim order during the pendency of the writ petition - appellants contention is that because the Tribunal has not been constituted the writ petition has been filed and the demand ought to have been stayed in its entirety - HELD THAT - If the interim order is not granted there is likelihood of recovery proceedings being initiated and the writ petition itself may be rendered infructuous. However there cannot be blanket order of stay but there will be a condition which will be imposed on the appellants. The appeal stands disposed of by directing the appellants to pay a further 10 per cent of the disputed tax within a period of three weeks from the date of receipt of the server copy of this order and if this condition is complied with the demand and the balance tax penalty and interest shall remain stayed till the writ petition is disposed of.
In the case before the Calcutta High Court, the appellants challenged an order from the learned Single Bench that denied an interim order during the pendency of their writ petition. The appellants contested the decision by the Senior Joint Commissioner of State Tax, which was affirmed by the Appellate Authority, demanding a tax amount of Rs. 9,88,136/- along with a 10% penalty under Section 73(9) and interest. The appellants argued that due to the absence of a constituted Tribunal, the writ petition was necessary and the demand should be stayed entirely, especially since they had already paid 10% of the demand upon filing the statutory appeal.
The Court acknowledged the potential for recovery proceedings to commence, which could render the writ petition infructuous. However, it ruled against a blanket stay order. Instead, it imposed a condition requiring the appellants to pay an additional 10% of the disputed tax within three weeks from receiving the order. Compliance with this condition would result in the stay of the remaining demand, penalty, and interest until the writ petition's resolution. The appeal and the connected application were thus disposed of with these directions.
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