GST : Bank account of assessee should be de-freezed if appeal filed and 10% amount deposited : High Court

ORDER

1. This Writ Petition has been filed to direct the respondent to consider the representation of the petitioner dated 18-10-2023.

2. Mr. T.N.C. Kaushik, learned Additional Government Pleader takes notice on behalf of the respondents. By consent of the parties, the main writ petition is taken up for disposal at the admission stage itself.

3. According to the petitioner, the petitioner had filed his GST Returns. However, the supplier of the petitioner had failed to make the payment of GST. Since the supplier had failed to make the deposit, the respondents had proceeded against the petitioner and passed an order. Further, the respondents had also freezed the bank account of the petitioner. Therefore, the petitioner made a representation dated 18-10-2023 to de-freeze their bank account, wherein they had undertook to deposit the pending ITC to the respondents.

4. The learned counsel for the petitioner would also submit that the petitioner had filed an appeal before the Appellate Authority, whereby, they had paid a sum of Rs. 83,000/- for accepting the appeal, which is yet to be numbered by the respondent.

5. Heard the learned counsel for the petitioner and the respondents and also perused the materials available on record.

6. Considering the submissions, it appears that the respondent directed the petitioner to pay a sum of Rs. 4,34,522/-. According to the provision of Section 107 of Goods and Services Tax Act, 2017, (hereinafter called as “GST Act”), if the petitioner paid 10% of the outstanding tax dues along with penalty, the respondent proceedings will be automatically stayed. The said legal position was also confirmed by the learned counsel for the respondents. In such view of the matter, in the present case, since the petitioner had paid a sum of Rs. 83,000/-, the respondent is supposed to have de-freeze the bank account of the petitioner as per Section 107 of the Act.

7. In view of the above, the respondents are directed to consider the representation of the petitioner dated 18-10-2023 and de-freeze the petitioner’s bank account, upon the production of proof of deposit of Rs. 83,000/- or 10% of the total demand made by the respondent. The said exercise shall be completed within a period of one week from the date of receipt of copy of this order.

8. With the about direction, this Writ Petition is disposed of. No cost.