Maa Sunaina Construction Private Limited Vs Union of India (Patna High Court)
In the case of Maa Sunaina Construction Private Limited Vs Union of India, the Calcutta High Court addressed the issue of pre-deposit requirements for filing appeals before the Goods and Services Tax (GST) Tribunal. Under Section 112 of the Central Goods and Services Tax Act, 2017, taxpayers must deposit a percentage of the disputed tax amount before appealing to the tribunal. Initially, this pre-deposit was set at 20%, but a recent amendment reduced it to 10%. However, this change only takes effect from November 1, 2024, and GST Tribunals have not yet been constituted. In the interim, the Court ruled that the petitioner is entitled to a stay on recovery after paying 10% of the disputed tax amount until the tribunal is functional.
The court emphasized that taxpayers should not be penalized for the government’s failure to establish the GST Tribunal. It directed that upon payment of the required 10% deposit, recovery actions should be stayed. However, once the tribunal is constituted, the petitioner must file an appeal within the prescribed time. If the petitioner chooses not to file an appeal, the authorities may proceed with recovery measures. The court also ordered the release of any bank account attachments if the taxpayer complies with the 10% deposit condition. This ruling provides temporary relief to taxpayers awaiting the establishment of GST Tribunals.
