Archita Soap And Chemical LLP Through Partner Smt. Minakshi Mundra Vs Joint Commissioner (Appeals) State Tax (Chhattisgarh High Court)
Outstanding GST demand couldn’t be recovered if pre-deposit was made and undertaking was filed to approach Tribunal on its functional
Conclusion: No recovery of outstanding GST ( Goods and Services Tax ) demand could be made once a taxpayer deposited the statutory pre-deposit under Section 112(8) of the CGST Act and filed an undertaking to approach the Appellate Tribunal when it become functional.
Held: Assessee had challenged the order dated 9 September 2024, passed by the Joint Commissioner (Appeals) under Section 107(11) of the CGST/Chhattisgarh GST Act, 2017, as well as the rejection of its rectification application under Section 161 on 10 March 2025. Assessee contended that in view of the Finance Ministry’s circular, taxpayers were entitled to protection from recovery of outstanding demands once they make the statutory pre-deposit under Section 112(8) and file an undertaking to approach the Appellate Tribunal when it becomes functional. On appeal. It was held that there were explicit guidelines for recovery of outstanding dues in cases wherein, first appeal had been disposed of till the Appellate Tribunal comes into operation, the Courts was of the considered opinion that nothing remains for adjudication in this Writ Petition. Accordingly, liberty was reserved in favour of assessee to comply with the necessary conditions of circular No.224/18/2024-GST of the Central Board of Indirect Taxes and Customs dated 11.07.2024 by filing an undertaking/declaration with the jurisdictional proper officer that she would file an Appeal against the order under challenge before the Appellate Tribunal as and when it comes into operation within the time lines mentioned in Section 112 of the CGST Act and should also pay pre-deposit as per sub-section (8) of Section 112 of CGST Act within a period of 15 days from the date of receipt of copy of this order. It was ordered that as per the said circular, if assessee filed such undertaking with regard to the pre-statutory deposit, the recovery of the remaining amount should remain stayed as per sub-section (9) of Section 112 of the CGST Act. It was made clear that if the said amount was not deposited within the aforementioned period, this order should lose its efficacy.
