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2019 (7) TMI 587 - HC - GSTEncashment of Bank Guarantee - Section 21 of Integrated Goods and Service Tax Act read with Section 107 of the Maharashtra Goods and Service Tax Act, 2017 - grievance of the petitioner is that the order dated 26th march 2019 passed by the Dy. Commissioner of Sales Tax is subject to further appeal to the Goods Service Tax Appellate Tribunal (Tribunal) - HELD THAT - Mr. Sonpal, learned Special Counsel for the respondents-State, seeks time to take instructions and file an affidavit, if so required. At his request, the petition is adjourned to 19th July 2019 at 3.00 p.m.
Issues:
Challenge to encashment of bank guarantees under GST Acts; Prima facie violation of court decision; Appeal process to Tribunal not followed. Analysis: The petition challenges the respondents' action of encashing 8 bank guarantees totaling ?4.72 crores on 29th March 2019, following an order dated 26th March 2019 under the Integrated Goods and Service Tax Act and the Maharashtra Goods and Service Tax Act. The petitioner contends that the encashment occurred despite the availability of an appeal process to the Goods Service Tax Appellate Tribunal, which allows a three-month period for filing an appeal. The petitioner had requested the respondents not to encash the bank guarantees as they were in the process of preparing an appeal against the order. This raises a grievance regarding the premature encashment of the guarantees before the appeal process was exhausted. The respondents' action in encashing the bank guarantees prima facie appears to contradict a previous decision of the court in Mahindra and Mahindra Ltd. vs. Union of India, as noted by the petitioners. The court has granted time to the learned Special Counsel for the respondents to seek instructions and file an affidavit, if necessary. The matter has been adjourned to a later date for further proceedings, with a warning to the parties that the petition is likely to be finally disposed of on the next date. This indicates that the court is inclined to resolve the issue promptly and decisively, considering the urgency and importance of the matter at hand.
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