In a recent ruling, the Patna High Court granted a stay on Goods and Service Tax ( GST ) recovery dues due to an ongoing proposal to reduce the appeal deposits from 20% to 10%.
Mani Printers, the petitioner was involved in a dispute regarding the amount of tax that must be deposited when filing an appeal before the Goods and Service Tax Appellate Tribunal.
The requirement, previously set at 20% under Section 112 of the Bihar Goods and Services Tax (BGST) Act, was being considered for reduction to 10%. However, the official notification formalizing this change had not yet been issued.
The petitioner sought relief related to the tax deposit requirement, as the Goods and Service Tax (GST) Appellate Tribunal had not yet been constituted.
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The bench comprising the Chief Justice of Patna and Justice Partha Sarthy observed the matter and the submission of the petitioner. The court noted that there was a proposal to reduce the tax deposit for filing an appeal from 20% to 10%, though the notification has not been issued.
The court observed that in previous cases, it had directed petitioners to pay 20% of the tax dues and granted a stay on recovery until the GST Appellate Tribunal was established. Given the proposal for reduction, the court decided to modify its earlier approach.
The court ordered a stay on the recovery of the tax dues, provided the petitioner deposits 10% of the tax dues within one month. The matter was posted for a further hearing on 19th November 2024.
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