Non-Functioning of GST Appellate Tribunal: Gujarat HC stays GST Recovery Proceedings [Read Order]

The Gujarat High Court has stayed the order for recovery of dues because, as there was a challenge before the Goods and Service Tax Appellate Tribunal (GSTAT). It was found that the though the Tribunal is constituted, it is still not functioning.

Rajkalp Mudranalya Private Limited, the petitioner challenged the order passed by the Appellate Authority under the CGST. Since no Tribunal is constituted, the challenge is undefined to the order by way of the petition. It was submitted that the department initiated recovery of the penalty under the order impugned in this petition. 

The order is taken on record.  Reading the order would indicate that the author of the order had opined that the petitioner should inform the authority if any appeal or stay application has been filed against the OIA dated 31.07.2023 and whether the Appellate Authority has granted a stay of the order.  It is the case of the authority that if no stay of recovery of dues has been granted, the petitioner is called upon to pay the dues in question.

On one hand, though the Tribunal is constituted, it is still not functioning and the Competent undefined Authorities think it is fit to issue orders of recovery asking the assessees for information whether an appeal has been filed at all.  This is a contradistinction between the authorities in question.

A division bench of Justice Biren Vaishnav and  Justice Mauna M Bhatt stayed the order initiating steps of recovery.

To Read the full text of the Order CLICK HERE

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