Allahabad High Court Halts CGST Recovery, Orders 20% Disputed Tax Deposit
In a recent development, the Allahabad High Court addressed a crucial matter concerning the recovery of Central Goods and Services Tax (CGST). Here’s a breakdown of the key points in simple language:
- Legal Proceedings Overview:
- Ms. Pragya Pandey represented the petitioners, while the State respondents were represented by the learned Standing Counsel.
- Sri Gopal Verma appeared as the learned counsel for respondent No.2.
- Reference to Previous Order:
- The counsel for the petitioners referred to a previous order dated 12.12.2023, from a coordinated bench of the Court in Writ Tax No.1412 of 2023.
- The earlier order favored the same petitioners but for a different assessment year. It directed the deposit of 20% of the disputed tax liability.
- Consensus and Direction:
- The Court acknowledged and agreed with the view taken by the coordinated bench.
- Consequently, a similar direction was issued in the present case.
- Legal Procedure:
- The respondents’ counsel were instructed to file a counter affidavit within four weeks, with a rejoinder affidavit, if necessary, within two weeks thereafter.
- Upcoming Hearing:
- The case is scheduled to be tagged and listed with Writ Tax Nos.1412 and 1415 of 2023 on 19.02.2024.
- Deposit Directive:
- The Court directed the petitioners to deposit 20% of the disputed tax liability, in addition to the previous deposit (which was 10% of the disputed tax liability), before the assessing authority.
- Stay on Recovery Proceedings:
- Upon the petitioners making the required deposit within four weeks from the date of the order, the recovery proceedings of the remaining amount will be stayed until the finalization of the present writ petition.
This directive from the Allahabad High Court provides clarity on the required deposit and puts a halt to the CGST recovery proceedings, offering relief to the petitioners until the case is resolved. Stay tuned for further updates on this matter.
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