Adani Wilmar Limited & Anr. Vs Deputy Commissioner of State Tax & Ors. (Calcutta High Court)
The Kolkata High Court addressed a writ petition filed by Adani Wilmar Limited, challenging an appellate order dated June 18, 2024, issued by the respondent. The core of the petition revolved around the recovery of outstanding dues, particularly in light of a recent circular from the Ministry of Finance. This circular, numbered 224/18/2024-ST and dated July 11, 2024, provided guidelines concerning the recovery of dues when a first appeal has been disposed of, but the GST Appellate Tribunal (GSTAT) is not yet operational. The circular outlined procedures for taxpayers to make pre-deposit payments under Section 112(8) of the CGST Act and to subsequently avail a stay on the remaining demand under Section 112(9). It clarified the process for payment through the Electronic Liability Register and the requirement for taxpayers to submit an undertaking to file an appeal with the Appellate Tribunal once it is established. The court’s proceedings considered the implications of this circular on the petitioner’s situation.
The court, after hearing arguments from both parties, acknowledged the absence of a functional Appellate Tribunal. The petitioners presented a prima facie case, leading the court to grant an initial unconditional stay on the appellate order’s demand for two weeks. Furthermore, the court stipulated that if the petitioners paid 10% of the disputed tax amount, in addition to the amount already deposited under Section 107(6) of the CGST Act, within the two-week period, the interim stay would remain in effect until the writ petition’s final disposal or until further orders. The court also directed the respondents to file an affidavit-in-opposition within six weeks, with a week allowed for a reply, and granted liberty to mention the case after the completion of the affidavit exchange. The court’s decision effectively provided temporary relief to Adani Wilmar, aligning with the Finance Ministry’s circular to address the procedural challenges arising from the non-operational Appellate Tribunal.
