Kerala HC Dismisses Petition: Failure to Deposit mandated GST Penalty

Tikendra Singh Rithal Vs State Tax Officer (Kerala High Court)

In a recent judgment, the Kerala High Court addressed the case of Tikendra Singh Rithal vs. State Tax Officer regarding the failure to deposit the assessed penalty amount mandated by the GST Act.

The petitioner, Tikendra Singh Rithal, had filed a writ petition challenging the order (Ext.P12) which required payment under Section 112 (1) of the CGST Act, 2017. This section stipulates that no appeal can proceed unless 20% of the disputed tax amount is paid.

Despite orders from the court to maintain bank guarantees pending the petition’s disposal upon depositing 20% of the penalty, the petitioner failed to comply by the specified date. The court subsequently warned of dismissal if payment wasn’t made by April 9, 2024.

During the hearing, the petitioner’s counsel acknowledged non-compliance with both statutory requirements and court directives. Consequently, the Kerala High Court dismissed the writ petition due to non-payment, emphasizing adherence to statutory provisions and court orders under the GST Act.

FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT

The petitioner has filed this writ petition challenging Ext.P12 order. Ext.P12 order is appealable before the Appellate Tribunal under Section 112 (1) of the CGST Act, 2017. Section 112 (8) (b) provides that no appeal shall be filed under Section 112 (1) unless the appellant has paid a sum equal to 20% of the remaining amount of Tax in dispute.

2. The petitioner has preferred this writ petition as the Appellate Tribunal is not constituted.

3. This Court, on 28.02.2024, at the time of admission ordered that the petitioner shall keep alive the Bank Guarantees till the disposal of the writ petition subject to the petitioner making a deposit of 20% of the assessed penalty amount. On such deposit, it was ordered that the Bank Guarantee shall not be invoked and no recovery shall be effected from the petitioner.

This Court on 01.04.2024 passed an order making it clear that if the 20% of the assessed penalty is not paid by 09.04.2024, the writ petition is likely to be dismissed.

4. When the writ petition came up for consideration today, it is submitted by the learned Counsel for the petitioner that the petitioner has not deposited 20% of the assessed tax/penalty as mandated by the Act and as directed by this Court.

Since the deposit as mandated by the CGST Act and as directed by this Court is not made, the writ petition is dismissed.