Appeal preferred against assessment order hence order of attachment and garnishee impermissible

By POONAM GANDHI Goods and Services Tax Judiciary October 3, 2024

TaxGuru Citation: 2024 taxguru.in 4926
Case Name: S K S Traders Vs Assistant Commissioner of State Tax and Others (Andhra Pradesh High Court)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: All High Courts, Andhra Pradesh High Court

Already Upgraded? Log in.

S K S Traders Vs Assistant Commissioner of State Tax and Others (Andhra Pradesh High Court)

Andhra Pradesh High Court held that continuation of order of attachment and Garnishee impermissible since petitioner has preferred an appeal against the assessment order and has paid 10% of the disputed tax as required under section 107 of the CGST Act.

Facts- The petitioner had suffered an order of assessment, under the A.P. Goods and Services Tax, 2017 (for short GST Act), issued by the 2nd respondent dated 13.01.2023. Under this order of assessment, the petitioner was declared to be liable to pay Rs.2,84,10,044/-. The 2^nd respondent for recovery of the said amounts, had initiated proceedings whereby attachment order in FORM GST DRC – 22, dated 03.11.2022 and Garnishee notice in FORM GST DRC -13, dated 20.04.2023, were issued to respondents 3 to 5.

The petitioner contended that they have filed an appeal against the said order of assessment and had also paid 10% of the disputed tax, as required u/s. 107 of the Central Goods and Services Tax Act, 2017 and consequently, the orders of Garnishee and attachment would have to be raised.

The petitioner has approached this Court by way of the present writ petition, complaining inaction on the part of respondents 1 and 2 in lifting the said order of attachment and Garnishee and in considering the representation of the petitioner dated 07.07.2023, despite passage of more than one year.