9911796707
TMI Blog2023 (12) TMI 942X X X X Extracts X X X X X X X X Extracts X X X X ..... ate writ or order thereby quashing the impugned Order dated 19.04.2022, Exhibit A, issued by the Respondent No. 3 along with consequential reliefs;" 2. The Petitioner has thereafter also filed an interim application praying for the following relief:- "a. direct the Respondents and their subordinates to forthwith consider the deposits made in terms of Challans at Exhibit B, as sufficient compliance of section 107 (6) of the MGST Act, and accept the Appeal filed by the Applicant on 10.10.2022, Exhibit E;" 3. We propose to dispose of the interim application and the writ petition by this common order since the issues are related. 4. The Petitioner is carrying on business of bullion trading in the name of Chamunda Bullion. It is the conte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents are not justified in retaining the same and further demanding a sum equal to 10% as pre-deposit for filing an appeal without adjusting the said deposit. The Petitioner has placed reliance on the decision of this Bench in the case of Vinod Metal Vs. State of Maharashtra (2023) 9 Centax 178 (Bom.) to contend that in an identical fact situation, this Court has held that the deposit made "under protest" should be considered as pre-deposit under Section 107(6) of the CGST Act. The Petitioner further contended that insofar as the blocking of credit is concerned, the period of one year under Section 83 has expired and, therefore, by operation of law, the said blocking ceases to have effect as per Section 83(2) of the CGST/MGST Act. 7. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peal and requested the Appellate-Authority to adjust the said sum of Rs. 1 Crore as compliance under Section 107(6) of the CGST/MGST Act. 10. In our view, the prayer made for adjustment as pre-deposit for maintainability of appeal by the Petitioner is justified and same is squarely covered by the decision of this Bench in the case of Vinod Metal (supra), wherein in a similar situation, this Court has observed that voluntary deposit made "under protest" cannot be excluded from considering it as a part of pre-deposit for filing an appeal before the Appellate Authority. The distinction sought to be made out by the Respondents, that the order in the case of the Petitioner is passed under Section 74, whereas in the case of Vinod Metal (supra), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch right needs to be made effective and meaningful. It cannot be frustrated by shackles of complex procedural formalities. 9. In the present case, the Petitioner is in no manner disputing that the Petitioner is required to comply with the provisions of sub-section (7) of Section 107 of the CGST Act, in filing the appeal. In other words, the Petitioner is ready and willing to make the payment/deposit of the tax as per clauses (a) and (b) of sub-section (6) of section 107 of the CGST Act. However, the question raised by the Petitioner is that for fulfilment of such condition, the amount of tax, which is voluntarily deposited by the Petitioner, under protest under sub-section (5) of section 73 of the CGST Act, by permitted to be reckoned for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In any view of the matter, the input tax credit is contended to have been blocked on 19th April 2022 and the period of one year expires on 19th April 2023, hence, by operation of law as per Section 83(2) of the CGST/MGST Act, the said attachment ceases to exists. 12. In view thereof, we pass the following order:- (i). The Respondents are directed to treat sum of Rs. 1 Crore as pre-deposit for the purpose of Section 107(6) of the CGST/MGST Act and the appeal be decided on merits. (ii). The input tax credit alleged to have been blocked vide order dated 19th April 2022 stands defreezed by operation of law. (iii). The Appellate-Authority shall decide the appeal filed by the Petitioner within a period of four months from the date of uplo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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