2024 (7) TMI 526 - HC - GST

Challenge to recovery notices - Deposit requirement under Section 112 of the GST Act - non-constitution of GST Tribunal - HELD THAT - Considering the fact that the petitioner has deposited more than 20% of the disputed tax, the impugned recovery Notices issued to the petitioner shall be kept in abeyance subject to the condition that the petitioner either files appeals before the GST Tribunal in case GST Tribunal is constituted, within a period of 30 days from the date of receipt of a copy of this order or in the alternative, the petitioner files Writ Petitions challenging the respective Orders-in-Appeals and/or Orders-in- Original, within such time. Petition disposed off.

Summary

Issues:
Challenging recovery notices based on adverse Orders-in-Original and Orders-in-Appeal, Deposit requirement under Section 112 of the GST Act, Interpretation of the decision of the Bombay High Court regarding the non-constitution of the GST Tribunal, Stay on recovery notices pending appeal or writ petitions.

Analysis:
The petitioner challenged recovery notices issued by the respondent based on adverse Orders-in-Original and Orders-in-Appeal. The Orders-in-Original were passed against the petitioner for different assessment years, and subsequent appeals before the Appellate Authority were dismissed, leading to the issuance of recovery notices. The petitioner contended that no GST Tribunal had been constituted, and therefore, approached the High Court seeking relief. The petitioner had already deposited more than 20% of the disputed tax amount as required under Section 112 of the GST Act.

The court considered the petitioner's argument and referred to a decision of the Bombay High Court regarding the non-constitution of the Tribunal. The Bombay High Court's decision emphasized that appealable orders should not be implemented until the Tribunal becomes functional to avoid prejudicing taxpayers. The court decided to keep the impugned recovery notices in abeyance, provided the petitioner either filed appeals before the GST Tribunal within 30 days if constituted, or filed writ petitions challenging the Orders-in-Appeal and Orders-in-Original. The court stayed the recovery notices pending further orders in the appeals or writ petitions, granting relief to the petitioner.

In conclusion, the High Court disposed of the Writ Petitions, keeping the impugned recovery notices stayed. The court did not impose any costs on the parties and closed the connected Miscellaneous Petitions. The judgment provided a temporary reprieve to the petitioner pending the outcome of appeals before the GST Tribunal or through writ petitions challenging the adverse orders.