Rockfield Mining and Minerals Pvt. Ltd. & Anr. Vs State of West Bengal & Ors. (Calcutta High Court)
In the case of Rockfield Mining and Minerals Pvt. Ltd. & Anr. Vs State of West Bengal & Ors., the Calcutta High Court issued an unconditional stay on the demand arising from an appellate order for two weeks. The order was issued in light of the non-constitution of the Goods and Service Tax Appellate Tribunal (GSTAT). Justice Rajarshi Bharadwaj observed that if the petitioner deposits 10% of the balance tax amount in dispute, in addition to the pre-deposit under Section 107(6) of the CGST Act, the stay would remain effective until the disposal of the writ petition or further orders.
The petitioners challenged the appellate order dated March 19, 2024, arguing that enforcement of the demand is premature since GSTAT, the designated appellate body for such disputes, is yet to be operational. They relied on Circular No. 224/18/2024 issued by the Ministry of Finance on July 11, 2024. The circular clarifies that recovery of outstanding dues should remain suspended in cases where a first appeal has been disposed of, provided the taxpayer plans to appeal before GSTAT once constituted.
The circular outlines a clear process for taxpayers to make pre-deposit payments under Section 112(8) of the CGST Act. Taxpayers can navigate through their dashboards to allocate pre-deposit payments against specific outstanding demands. This payment method facilitates an automatic stay on the remaining demand, subject to filing a declaration to appeal before GSTAT when it becomes functional. The court noted this guidance as a critical factor in staying the demand.
