Rasidul Hoque And Anr Vs State of Assam And 3 Ors (State of Assam And 3 Ors)
Gauhati High Court held that in case bank account is frozen then appeal can be entertained without any pre-deposit if the account which is frozen has deposits equivalent or more than amount of pre-deposit in terms of section 107(6)(b) of the Assam Goods and Services Tax Act, 2017.
Facts- The instant writ petition has been filed challenging the Order-in-Original passed by the Assistant Commissioner of State Tax in respect to F.Y. April 2023 – March 2024 whereby the authority concerned arrived at an opinion that the Petitioners had resorted to wilful mis-declaration of the available ITC and claimed wrongful refund. Accordingly, the Petitioners were directed to pay an amount of Rs.1,28,99,290/- for the period from March, 2022 to March, 2023 and Rs.87,13,636/- for the period April, 2023 to February 2024. The Petitioners have also assailed the ITC Block Notice issued by the Assistant Commissioner of State Tax dated 12.08.2024.
Conclusion- It is well settled that the amount to be paid as pre-deposit is for filing or entertaining the Appeal and not for realization of the tax amount.
Held that in the bank account(s) which have been frozen as stated in the Show Cause Notice dated 09.04.2024 and if the said accounts are still un-operational on account of the freeze, the Appellate Authority is directed to permit the filing of the Appeal(s) as well as to entertain the Appeal(s) without any pre-deposit subject to the accounts which have been frozen (the details mentioned in the Show Cause Notice dated 09.04.2024), has/have deposit(s) equivalent or more than the amount required to be deposited in terms with Section 107(6)(b) of the Act of 2017. The Court further observes and directs that in the eventuality the amount lying in the frozen accounts mentioned in the Show Cause Notice dated 09.04.2024 are not equivalent amount requisite for the pre-deposit in terms with Section 107(6)(b) of the Act of 2017, the Petitioners would have to additionally deposit so much of the amount before the Authority so that the mandate of Section 107(6)(b) of the Act of 2017 is complied with.
