BWN Alloys Private Limited Vs State of West Bengal & Ors (Calcutta High Court)
In the case of BWN Alloys Private Limited vs State of West Bengal & Ors, the Calcutta High Court addressed a challenge against an appellate order dated June 14, 2023. The petitioner referred to Circular No. 224/18/2024-GST issued on July 11, 2024, which restricts recovery proceedings in cases where the first appeal has been disposed of, but the GST Appellate Tribunal is not yet operational. The circular provides that taxpayers intending to file an appeal before the Tribunal may deposit the required pre-deposit amount and submit an undertaking, thereby gaining a stay on further recovery until the Tribunal becomes functional.
The petitioner argued that, in line with the circular and the absence of a functioning Tribunal, the recovery of the disputed tax demand should be stayed. The Court agreed that a prima facie case was made and granted an unconditional stay on the impugned demand for two weeks. Furthermore, it allowed continuation of the interim protection if the petitioner deposited an additional 10% of the disputed tax (on top of any prior deposit under Section 107(6) of the CGST Act) within that period.
The State was represented by Mr. Siddiqui, Additional Government Pleader, who acknowledged the standard terms of Section 112(8) of the CGST Act. The Court directed the parties to complete the exchange of affidavits within the prescribed timeline and granted liberty to mention the matter post that period. This order underscores the current legal position regarding recovery during the interim period before the Appellate Tribunal becomes functional.
