S. S. Civil Construction Private Limited Vs Assistant Commissioner of Revenue (Calcutta High Court)
The petitioner challenged an appellate order dated March 11, 2025 passed under Section 107 of the WBGST Act, 2017/CGST Act, 2017, by which its appeal against the assessment order dated April 25, 2024 was dismissed. Following dismissal of the appeal, the petitioner’s bank account with Punjab National Bank was attached, and the bank was directed by GST authorities to remit ₹2,76,82,660 to the Government pursuant to a notice issued on November 19, 2025.
The petitioner submitted that it was ready and willing to deposit an amount equivalent to ten percent of the balance tax in dispute as required under Section 112(8) of the Act, and thereafter prefer an appeal before the Appellate Tribunal when it becomes functional. It was argued that upon such deposit, the bank attachment should be lifted and recovery proceedings stayed, and apprehension was also expressed that other bank accounts might be attached.
The GST authorities submitted that under Section 112(9) of the Act, once the statutory deposit under Section 112(8) is made, recovery proceedings for the balance amount are deemed to be stayed.
After considering the submissions, the Court held that if the petitioner deposits ten percent of the remaining disputed tax within two weeks, the attachment of the bank account shall be lifted forthwith, as recovery proceedings would stand deemed stayed under Section 112(9). The petitioner was granted liberty to file an appeal before the Appellate Tribunal in accordance with law when it becomes functional. The writ petition was disposed of without costs.
