Case Law Details
Shaikh Sons & Co And Anr. Vs Union of India And Ors. (Calcutta High Court)
The Calcutta High Court reviewed an intra-court appeal in the case of Shaikh Sons & Co and Anr. vs Union of India and Ors., focusing on a dispute regarding a pre-deposit for filing a GST appeal. The appellants challenged a single-bench order that required them to pre-deposit ₹3,00,000, in addition to the statutory 10% of the disputed tax amount. They contended that the additional pre-deposit imposed by the lower court was excessive and contrary to statutory requirements.
The High Court agreed with the appellants, modifying the order to require only a 10% pre-deposit of the disputed tax, in compliance with statutory provisions. The court directed the appellants to make this deposit within ten working days and file their appeal electronically. Upon compliance, the attachment order issued on 24th July 2024 would be revoked, allowing the appellants to operate their bank account. The appellate authority was instructed to resolve the case expediently, ensuring a personal hearing for the appellants’ representatives. Failure to comply with the revised order would result in the automatic dismissal of the appeal.
Assessee was represented by Advocate Himangshu Kumar Ray
FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT
1. This intra court appeal by the writ petitioners is directed against the order dated 1st October, 2024 in WPA 21478 of 2024.
2. Himangshu Kumar Ray, learned advocate for the appellants would submit that the appellants are not aggrieved by the direction issued in paragraph 8 of the impugned order by which the learned Single Bench directed the order of attachment issued in Form GST DRC – 13 dated 24th July, 2024, but is only aggrieved by the direction issued in paragraph 6 directing the appellant/writ petitioners to make pre-deposit of Rs.3,00,000/- which is over and above 10% of the disputed tax which is statutorily required to be pre-deposit for preferring an appeal.
3. Since the statute prescribes a particular percentage, the same has to be adhered to by the assessee and at the normal circumstances the court will not alter the amount to be deposited but, however, in certain exceptional cases the court may exercise discretion and direct payment of a portion of the disputed tax. However, the instant case does not fall under any such exception.
4. Therefore, we dispose of this appeal by slightly modifying the direction issued in paragraph 7 of the impugned order by directing the appellant/writ petitioners to make pre-deposit of 10% of the disputed tax instead of Rs.3 lakhs within a period of 10 working days from the date of receipt of the server copy of this order and file an appeal electronically with the appellate authority. The appellate authority shall dispose of the appeal after affording an opportunity of personal hearing of the authorized representatives of the appellant within a reasonable period preferably within eight weeks from the date on which the personal hearing is concluded on merits and in accordance with law.
5. Upon the pre-deposit of 10% of the disputed tax in terms of the above order being made, the order of attachment issued in Form GST DRC – 13 dated 24th July, 2024 shall stand revoked and the appellant/writ petitioners shall be entitled to operate his bank account. In the event the appellant fails to comply with this order, the benefit of the order will not enure to the appellant and the appeal would automatically be dismissed without reference to this court.
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