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2021 (5) TMI 618 - HC - GSTRecovery of GST while the appeal is pending - requirement with the pre-deposit - section 107 (7) of JGST Act - HELD THAT - In view of the specific provision of sub-Sections 6 7 of Section 107 of the JGST Act and in view of the admitted position that the subsequent garnishee notices dated 15.01.2021 covers both the appeals filed by the petitioner, this Court is of the view that on account of pre-deposit which has been made by the petitioner at appellate stage read with the mandate of section 107 (7) of JGST Act, the petitioner deserves an interim protection. The counsel for the State may seek instructions and file response to the affidavit dated 24.03.2021 and also give appropriate explanation for the statement made in the counter-affidavit filed on behalf of respondent No.-2 which prima-facie appears to be incorrect, in view of the affidavit dated 24.03.2021 filed by GSTN. The operation, implementation and execution of the impugned garnishee notice dated 14.12.2020 issued in FORM GST DRC 13 to the petitioner s banker, namely, Andhra Bank, Branch-Jagatpura, Jaipur, Rajasthan as well as the impugned garnishee notice dated 15.01.2021 issued in FORM GST DRC 13 to third party, namely, M/s. Adani Power (Jharkhand) Ltd. (SEZ Unit) as contained in Annexure-15 of the interlocutory application being I.A. 601/2021 are stayed till the next date. The matter is adjourned and is directed to be posted on 19.04.2021.
Issues:
Challenge to notice dated 14.12.2020 in FORM GST DRC-13 for payment of GST dues. Appeal filed against the order. Challenge to another FORM GST DRC-13 issued to a third party. Filing of additional appeal with pre-deposit. Interpretation of Sections 6 & 7 of Section 107 of JGST Act. Discrepancy in statements regarding appeal filing. Stay of garnishee notices. Requirement of response to affidavit. Stay of impugned garnishee notices. Filing of supplementary counter-affidavit. Analysis: The petitioner challenged a notice dated 14.12.2020 in FORM GST DRC-13 directing the petitioner's banker to pay ?38,14,026.24 as GST dues. An appeal was filed against this order with a pre-deposit of ?1,78,222. During the case, another FORM GST DRC-13 was issued to a third party for ?85,65,368.24, which included the amount from the previous order. The petitioner filed an additional appeal on 02.03.2021 with a pre-deposit of ?2,10,703. The petitioner argued that appeals were filed within the prescribed timeframe under Section 107 of JGST Act, and as per Sections 6 & 7 of Section 107, a deposit results in an automatic stay of the remaining amount. The State initially claimed no appeal was filed against the order dated 13.10.2020, but GSTN confirmed an appeal was filed on 09.01.2021. The State requested time to respond to GSTN's affidavit. The Court noted that the appeal filed on 09.01.2021 had not been dismissed for non-compliance, and the appeal filed on 02.03.2021 was under consideration, with the required deposit made. Considering the provisions of Section 107(6) and (7) of the JGST Act and that the subsequent notices covered both appeals, the Court granted interim protection to the petitioner. The State was directed to respond to the affidavit and explain the discrepancy in statements made. The Court stayed the implementation of both impugned garnishee notices until the next date, allowing the State time until 15.04.2021 to file a supplementary counter-affidavit in response to GSTN's affidavit. The matter was adjourned and scheduled for the next hearing on 19.04.2021.
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