Shakti Infotech Pvt. Ltd. Vs Union of India through The Secretary (Patna High Court)
In the case of Shakti Infotech Pvt. Ltd. Vs. Union of India, the Patna High Court dealt with a challenge regarding the pre-deposit requirement for staying the recovery of GST dues. The petitioner had requested a reduction in the pre-deposit from the usual 20% to 10%, as the Goods and Services Tax Appellate Tribunal (GSTAT( had not yet been constituted. The Court acknowledged that although an amendment had reduced the pre-deposit requirement to 10%, the amendment would only come into effect on November 1, 2024. In the interim, the Court granted a temporary stay on the recovery of the disputed tax amount, allowing the petitioner to deposit only 10% of the disputed tax amount until the Tribunal is constituted and the appeal process can be initiated.
The Court emphasized that, due to the non-constitution of the GST Tribunal, the petitioner could not file an appeal before the Tribunal. As a result, the Court directed that if the petitioner deposited 10% of the disputed tax amount, in addition to any earlier deposits, they would be entitled to a stay of recovery. The Court also made it clear that once the Tribunal is constituted, the petitioner must file the appeal as per the statutory requirements. If the petitioner fails to file the appeal within the prescribed time, the authorities would be free to proceed with the recovery actions. Additionally, the Court instructed that any bank account attachments related to the disputed tax amount would be released upon the deposit of the required sum. With these directions, the writ petition was disposed of.
