Kerala HC directs to Correct Mistake in Interim Stay Order passed with Direction to remit 20% of Tax [Read Order]

In a recent judgement, the Kerala High Court (HC) directed to correct the interim stay order passed with the mistake of the direction to remit 20% of the tax on the disputed amount.

Sandeep, the petitioner filed a petition to review the interim order passed by the Court, where this Court had granted an interim stay for two months on the condition that the petitioner remits 20% of the disputed demand within one month. 

It was pointed out that the direction to remit 20% is not what is contemplated under Section 112(8)(b) of the CGST Act, 2017 and that, what is contemplated is only a sum equal to 20% of the remaining amount of tax in dispute, in addition to the amount paid under sub-section 6 of Section 107.

Section 112(8)(b) of the CGST Act provided that no appeal shall be filed under sub-section (1) a sum equal to twenty per cent. of the remaining amount of tax in dispute, in addition to the amount paid under sub-section (6) of section 107, arising from the said order 1 “subject to a maximum of fifty crore rupees”, about which the appeal has been filed.

Under sub-section 6 of Section 107, no appeal shall be filed under sub-section (1), unless the appellant has paidin full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him; and a sum equal to ten per cent. of the remaining amount of tax in dispute arising from the said order, about which the appeal has been filed.

A Single member comprising Justice T R Ravi observed that the order was issued mistakenly and needs to be corrected. The Court allowed the Review Petition and recalled the order. 

To Read the full text of the Order CLICK HERE

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