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2024 (6) TMI 1094 - HC - GSTAttachment order in terms of the provisions contained in Section 79 (1) (c) of the WBGST/CGST Act, 2017 - notification dated 2nd November 2023 as well as pre-deposit requirements complied with - HELD THAT - Admittedly, the petitioner has complied with the conditions set forth in paragraph 3 of the notification and had made a deposit of additional 2.5 per cent of the amount of tax in dispute. It is, however, noticed that notwithstanding the Coordinate Bench of this Court by its order dated 17th November 2023 directing the appellate authority to dispose of the said appeal filed by the petitioner on merits, the same has been kept pending and the order of attachment dated 8th August 2023 has also not been revoked. It may be noted that the petitioner has a statutory right to challenge the determination made under Section 73 of the said Act. Although, the petitioner had preferred an appeal and the said appeal has been kept pending, the respondents are continuing with the proceeding for recovery of tax under Section 79 of the said Act. Despite the aforesaid appeal filed by the petitioner now stands regularized in terms of the notification dated 2nd November 2023 and the petitioner having complied with the conditions indicated, the respondent could not have denied the benefit of Section 107 (7) of the said Act. Since, the said Act does not permit continuance of recovery proceeding for the balance amount and the same is deemed to be stayed, once, the provisions of Section 107 (6) of the said Act are complied with, the order of attachment dated 8th August 2023 passed by the respondents cannot be permitted to continue. Petition disposed off.
Issues involved:
Challenge to continuance of order of attachment under Section 79(1)(c) of WBGST/CGST Act, 2017 despite compliance with appeal deposit requirements and notification conditions. Analysis: The petitioner challenged the continuance of an order of attachment under Section 79(1)(c) of the WBGST/CGST Act, 2017, despite complying with the appeal deposit requirements and conditions of a notification. The petitioner filed an appeal under Section 107 of the Act against an order passed under Section 73 for the tax period July 2017 to March 2018. The appeal was filed beyond the limitation period but relied on a notification allowing disposal of appeals filed on or before a specified date if certain conditions were met. A Coordinate Bench directed the appellate authority to grant the benefit of this notification to the petitioner and dispose of the appeal on merits. The petitioner, in compliance with the notification, deposited an additional 2.5% of the tax amount in dispute and informed the Assistant Commissioner of State Tax. Despite this, the order of attachment on the petitioner's bank account remained in place. The petitioner argued that the respondents were acting improperly by continuing the attachment order and not disposing of the appeal as per the notification. The respondents acknowledged the additional payment and agreed to early disposal of the appeal. The Court observed that the petitioner had fulfilled the conditions of the notification and made the required deposit, as directed by a previous order. Despite this, the appeal remained pending, and the attachment order was not revoked. The Court noted that the petitioner had a statutory right to challenge the determination under Section 73 and that the Act did not permit recovery proceedings for the balance amount once the appeal conditions were met. Consequently, the Court quashed the attachment order and directed the appellate authority to hear and dispose of the appeal on merit within six weeks from the date of the order. In conclusion, the writ petition challenging the attachment order was disposed of, and the Court directed the issuance of a certified copy of the order to the parties upon compliance with necessary formalities.
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