The Madras High Court allowed the filing of GST ( Goods and Services Tax ) on 25% pre-deposit where the liability arises from the sister’s stock from her demolished godown found during the GST inspection.
According to the assessee-petitioner, Solai Venkateshwara Stores, the godown of the sister’s concern was demolished and therefore, the stocks were transferred and were found in the premises of the petitioner at the time of inspection on 13.05.2022.
The assessee challenged the GST orders for the assessment years 2021-22 and 2022-23, which demanded a combined total of Rs. 2,027,846. However, due to the illness and subsequent hospitalization of the petitioner’s husband, Mr. Bhuvanesh Kumar, the statutory appeal could not be filed within the stipulated time before the GST Appellate Deputy Commissioner, Trichy, as per Section 107 of the GST enactments.
The assessee also informed the court that the GST Department attached their bank account on May 22, 2024, to recover the tax liability, interest, and penalty amounting to Rs. 2,027,846. Additionally, it was noted that the petitioner had already paid Rs. 100,000 in cash and that the Department had recovered Rs. 40,096 from the petitioner’s Electronic Credit Ledger.
The counsel for the assessee argued that the demand confirmed by the GST Department was unjustified and that the imposed interest and penalty adversely affected the petitioner’s tax liability. Consequently, they requested one opportunity to file a statutory appeal.
After considering the arguments, the bench of Justice C. Saravanan decided to grant partial relief. The assessee was allowed to file a statutory appeal before the Appellate Deputy Commissioner (GST), Trichy, who is now suo motu impleaded as the second respondent in the writ petitions.
The assessee was instructed to file the appeal within 30 days of receiving a copy of the order and deposit an additional 25% of the disputed tax, in addition to the amount already recovered.
The GST Appellate Deputy Commissioner was directed to entertain and dispose of the petitioner’s appeals on merits and in accordance with the law within 3 months of the appeal filing. Should the petitioner fail to file the appeal with the pre-deposit as ordered, it was clarified by the court that the relief granted by the Court will be automatically revoked.
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