Dinesh Brothers Private Limited Vs Superintendent of Central Tax (Calcutta High Court)
Calcutta High Court has provided interim relief to Dinesh Brothers Private Limited in a Goods and Services Tax (GST) appeal, acknowledging the current non-constitution of the Appellate Tribunal. The decision allows the petitioner to secure a stay on a demand order by depositing an additional 10% of the disputed tax amount.
The petitioner had challenged an appellate order dated December 9, 2024, issued under Section 107 of the CGST/WBGST Act, 2017, which stemmed from an earlier order under Section 74 of the Act. Recognizing that the GST Appellate Tribunal is not yet constituted, making it impossible for the assessee to pursue the statutory second appeal, the High Court determined that the writ petition warranted a hearing.
Considering a prima facie case established by the petitioner and referencing the mandate of Section 112(8) of the Act (which deals with pre-deposits for appeals to the Tribunal), the Court directed Dinesh Brothers Private Limited to deposit an additional 10% of the remaining disputed tax amount. This is in addition to the amount already deposited under Section 107(6) for the first appeal.
The Court granted an unconditional stay on the demand for four weeks. This interim order will continue until the disposal of the writ petition or further order, whichever is earlier, provided the additional 10% deposit is made within the stipulated four-week period. The ruling effectively offers a temporary judicial recourse for taxpayers in states where the GST Appellate Tribunal is not yet operational, ensuring that their appeals are not unduly prejudiced by the lack of a proper forum.
