Case Law Details
N.G. Enterprises And Another Vs State of U.P. And 3 others (Allahabad High Court)
In a recent ruling, the Allahabad High Court intervened in a tax dispute under the CGST Act, ordering a stay on recovery proceedings and mandating the deposit of 20% of the disputed tax liability. The judgment reflects the Court’s stance on interim relief in such cases.
The High Court’s decision draws reference to a previous order in a similar matter, where it was deemed appropriate to deposit only 20% of the disputed tax liability instead of the usual 50%. This precedent, based on earlier judgments, sets a favorable tone for taxpayers, providing relief by reducing the burden of deposit requirements during ongoing disputes.
The Court’s directive highlights the importance of balancing the interests of both the tax authorities and the taxpayers. By mandating a lesser deposit, the Court aims to mitigate the financial strain on taxpayers while ensuring that the interests of the revenue authorities are safeguarded.
Additionally, the Court’s decision underscores the procedural aspects of tax disputes, requiring respondents to file counter-affidavits within a specified timeline. This procedural step ensures a fair and comprehensive consideration of all arguments before the Court reaches a final decision.
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