The High Court of Rajasthan sought responses from the GST department in a case of an illegal demand for Goods and Service Tax ( GST ) and granted time for filing the reply for the petition.
Mr Sharad Kothari, counsel appeared on behalf of M/s Shri Ganesh Traders, the petitioner, has submitted that the first appeal is decided against the petitioner, wherein a challenge was made to the illegal demand raised by the respondents. He submitted that though the petitioner has a remedy to approach the second appellate authority, till date the said authority has not been constituted.
It is argued that the second appellate authority has not yet been constituted and the respondents are taking coercive steps to recover the illegal demand. The petitioner has already deposited 10% of the disputed tax amount while filing the first appeal and is ready to deposit another 10% of the disputed tax amount.
Mr Hemant Dutt, counsel appeared on behalf of the respondents and prayed for some time to file a reply to the writ petition and admitted that till date the second appellate authority has not been constituted.
Any person aggrieved by an order passed against him under Section 107 or 108 of the Central or State Goods and Services Tax Act may appeal to the appellate Tribunal against such order within 3months from the date of the communication. However, the GST Appellate Tribunal has not been constituted yet.
A Coram comprising Justice Vijay Bishnoi and Justice Kuldeep Mathurgranted time to Mr Hemant Dutt to file a reply to the writ petition. The petitioner was directed to deposita further 10% of the disputed tax amount and furnishing security, other than cash and bank guarantee for the remaining 80%, to the satisfaction of the Assessing Authority.
The Court held that “no coercive steps shall be taken against the petitioner to recover any amount under the impugned assessment order dated 25.02.2021 and appellate order dated 31.01.2023.”
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