2023 (7) TMI 526 - HC - GST

Validity of garnishee notice - challenge on the ground that the appellant has paid the entire tax as demanded and has also preferred an appeal before the appellate authority and before the expiry of the period for filing the appeal, the garnishee notice was issued - HELD THAT - In terms of Section 107(7) of the CGST Act read with Section 107(6) for preferring an appeal, the aggrieved assessee is required to deposit 10% of the disputed tax. It is not in dispute that the appellant has paid the entire tax, which has been noted in the order dated 19th December, 2022 passed under Section 73(9) of the W.B.G.S.T. Act, 2017, which shows that the appellant/petitioner has paid the tax of Rs.74,69,348.00/-. Considering the facts and circumstances of the case and also the statutory requirement, which mandates payment of only 10% of the disputed tax, it is held that a condition need not be imposed by directing the appellant/petitioner to pay 20% of the interest - appeal allowed.

Summary

Issues involved: Challenge to garnishee notice and imposition of conditions for appeal deposit.

Summary:
The appeal was against a garnishee notice issued despite the tax being paid and an appeal pending. The Single Bench had granted a stay but imposed a condition to deposit 20% of the interest liability. The appellant had paid the entire tax as noted in a previous order. The statutory requirement mandated payment of only 10% of the disputed tax. The Court held that imposing a condition to pay 20% of the interest was not necessary. The appeal was allowed, setting aside the direction to pay 20% interest, and the appellate authority was directed to consider the appeal on merits. No costs were awarded, and parties were to receive copies of the order promptly upon compliance with legal formalities.