Punjab Metals vs. State Of Punjab And Others
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The petitioner, Punjab Metals, filed a writ petition seeking directions to the respondents to restore its GST registration, as per a prior order dated 29.06.2022. The petitioner contended that the respondents were insisting on payment of a subsequently determined liability, vide an order dated 19.05.2023, before restoring the registration. The petitioner argued that this subsequent order was appealable and, with the GST Tribunal not yet constituted, had approached the High Court. The respondents, represented by the State of Punjab, submitted that as per Circular No. 224/18/2024-GST dated 11.07.2024, the petitioner was required to make a pre-deposit as per Section 112(8) of the CGST Act and file an undertaking to appeal the order dated 19.05.2023 once the Tribunal is constituted.
Held
The Court disposed of the writ petition based on the statement made by the learned counsel for the petitioner. The petitioner expressed readiness to file an appeal in terms of Paragraphs 4 and 5 of the Circular No. 224/18/2024-GST dated 11.07.2024. The Court granted liberty to the petitioner to file an appeal in accordance with the aforementioned circular. The circular clarifies that taxpayers can make a payment equal to the pre-deposit amount through the GST portal and file an undertaking with the jurisdictional officer, stating their intention to appeal the order before the Appellate Tribunal as and when it is constituted. Upon fulfilling these conditions, the recovery of the remaining confirmed demand would be stayed as per Section 112(9) of the CGST Act. The Court did not make a specific finding on the legality of insisting on payment of the subsequent liability, but rather facilitated the petitioner's path to appeal.
Key Issues
1. Whether the petitioner's GST registration should be restored without insisting on the payment of the liability determined by the order dated 19.05.2023, given that the GST Tribunal is not constituted. (Question of law). Petitioner's arguments: The petitioner sought restoration of its GST registration in compliance with the order dated 29.06.2022, without being compelled to pay the liability determined by the subsequent order dated 19.05.2023. The petitioner highlighted that the order dated 19.05.2023 was appealable and that the non-constitution of the GST Tribunal necessitated approaching the High Court. Respondents' arguments: The respondents relied on Circular No. 224/18/2024-GST dated 11.07.2024, which mandates that the petitioner must make the pre-deposit amount as per Section 112(8) of the CGST Act and file an undertaking to appeal the order dated 19.05.2023 before the Appellate Tribunal when it becomes functional.
Sections Cited
Section 112(8), Section 112(9)
AI-generated summary — verify with the full judgment below
CWP-12827-2025 (O&M) -1- IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH 184 CWP-12827-2025 (O&M) Date of Decision: 06.05.2025 CORAM: HON’BLE MRS. JUSTICE LISA GILL HON’BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. Deepak Gupta, Advocate, for the petitioner. Mr. Saurabh Kapoor, Additional Advocate General, Punjab, for the respondents. ***** SUDEEPTI SHARMA,
J.
The petitioner in the present writ petition is praying for directions to the respondents to restore the registration of the petitioner in compliance with the order dated 29.06.2022 (Annexure P-6) passed in GST Appeal No.154A/2020-21/LDH without insisting the petitioner to pay the liability determined subsequently vide order dated 19.05.2023 (Annexure P-8) in Form GST DRC-07. 2. Admittedly order dated 19.05.2023 (Annexure P-8) passed by respondent No.3 (Assistant Commissioner, State Tax, Ludhiana-4) is appealable and since, the Goods & Services Tax Tribunal is not constituted, therefore, the petitioner has challenged the same before this Court.
Upon advance notice, learned counsel for the respondents-State submits that Government of India, Ministry of Finance, Department of VIRENDRA SINGH ADHIKARI 2025.05.13 17:10 I attest to the accuracy and integrity of this document
CWP-12827-2025 (O&M) -2- Revenue, Central Board of Indirect Taxes and Customs, GST Policy Wing, New Delhi, has issued Circular No.224/18/2024-GST dated 11.07.2024, as per which, the petitioner is required to make the payment of the amount of pre- deposit as per Section 112(8) of the CGST Act and file an undertaking/declaration with the proper juri ictional officer that he will file an appeal before the Appellate Tribunal, as and when it is constituted for challenging the impugned order dated 19.05.2023. 3. The relevant paragraphs No.4 and 5 of the aforesaid circular are reproduced as under:- “4. In order to facilitate the taxpayers to make the payment of the amount of pre-deposit as per sub-section (8) of section 112 of CGST Act, and to avail the benefit of stay from recovery of the remaining amount of confirmed demand as per sub-section (9) of section 112 of CGST Act, it is hereby clarified that in cases where the taxpayer decides to file an appeal against the order of the appellate authority and wants to make the payment of the amount of pre-deposit as per sub-section (8) of section 112 of CGST Act, he can make the payment of an amount equal to the amount of pre-deposit by navigating to Services >> Ledgers>> Payment towards demand, from his dashboard. The taxpayer would be navigated to Electronic Liability Register (ELL) Part-II in which he can select the order, out of the outstanding demand orders, against which payment is intended to be made. The amount so paid would be mapped against the selected order and demand amount would be reduced in the balance liability in the aforesaid register. The said amount deposited by the taxpayer will be adjusted against the amount of pre-deposit required to be deposited at the time of filing appeal before the Appellate Tribunal. VIRENDRA SINGH ADHIKARI 2025.05.13 17:10 I attest to the accuracy and integrity of this document
CWP-12827-2025 (O&M) -3-
The taxpayer also needs to file an undertaking/ declaration with the juri ictional proper officer that he will file appeal against the said order of the appellate authority before the Appellate Tribunal, as and when it comes into operation, within the timelines mentioned in section 112 of the CGST Act read with Central Goods and Services Tax (Ninth Removal of Difficulties) Order, 2019 dated 03.12.2019. On providing the said undertaking and on payment of an amount equal to the amount of pre-deposit as per the procedure mentioned in para 4 above, the recovery of the remaining amount of confirmed demand as per the order of the appellate authority will stand stayed as per provisions of sub- section (9) of section 112 of CGST Act.”
Learned counsel for the petitioner submits that petitioner is ready to file an appeal, in terms of Paragraphs No.4 and 5 of the above referred to circular dated 11.07.2024. 4. In view of the statement made by learned counsel for petitioner, present writ petition is disposed of with liberty to the petitioner to file an appeal, in terms of Paragraphs No.4 and 5 of the above referred to circular dated 11.07.2024. 5. Disposed of accordingly. (LISA GILL) (SUDEEPTI SHARMA) JUDGE
JUDGE
2025 Virrendra Whether speaking/reasoned: Yes / No Whether reportable: Yes / No VIRENDRA SINGH ADHIKARI 2025.05.13 17:10 I attest to the accuracy and integrity of this document
Reproduced from the public record of the Punjab and Haryana High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.