M/S Mahalaxmi Traders vs. The Joint Commissioner

The petitioner is before this Court seeking for the following reliefs:

This Hon'ble High Court may be pleased to call for view the records of the orders passed by the respondent nos. 1 and 2;

This Hon'ble High Court may be pleased to issue writ in the nature of certiorari and set aside the order dated 18/06/2025 in appeal no. GST-518/2023-24 incorporated in form GST APL-04 dated 20/06/2025 bearing order no. ZD2906250694870 passed by the respondent no. 1 and produced at ANNEXURE-P;

Consequently, this Hon'ble High Court may be pleased to issue writ of certiorari set aside order dated 20/01/2024 in form GST DRC-07 bearing Reference no. ZD2901240369374 and MA290124086853L passed by respondent no. 2 and produced at ANNEXURE-M;

This Hon'ble High Court may be pleased to issue a writ of certiorari to quash the recovery proceedings dated 21/06/2025 bearing reference no. HC-KAR NC: 2025:KHC-D:12378 DCCT(Audit-2)/End/2025-26/B-203 initiated by respondent no. 2 produced at ANNEXURE-Q;

This Hon'ble High Court may be pleased to grant any other relief to the petitioner which the Hon'ble Court may find appropriate under the circumstances of the above petition,

In the interest of justice and equity, for favour of which this petitioner, as in duty bound, shall forever pray.

The bank account of the petitioner having been frozen, the petitioner has now come forward to contend that the petitioner is willing to comply with the provision of Subsection (8) and (9) of Section 112 and deposit a sum equivalent to 20% of the disputed liability including the amount which had been deposited when the first appeal was filed.

I am of the considered opinion that the submission made by the counsel for the petitioner is in accordance with Subsection (8) and Subsection (9) of Section 112 of the The Central Goods and Services Tax Act, 2017 [‘CGST Act’ for short]. It is only on account that the tribunal not having been constituted that the HC-KAR NC: 2025:KHC-D:12378 petitioner was required to approach this court. If the tribunal had been constituted, the petitioner would have been well within his right to deposit sum equivalent to 20% of the disputed tax liability, thereby bringing into play the deeming fiction under Subsection (9) of Section 112 of CGST Act.

In that view of the matter, I pass the following: ORDER i. The relief sought for by the petitioner moulded. The petition is disposed by permitting the petitioner to deposit an amount equivalent to sum of 20% of the disputed tax liability with the first appellate authority, which shall be held by the first appellate authority until the constitution of the Tribunal. ii. Once the said amount is deposited, the deeming fiction under Subsection (9) of Section 112 of The Central Goods and Services Tax Act, 2017 HC-KAR NC: 2025:KHC-D:12378 would come into play, resulting in the attachment being withdrawn. (SURAJ GOVINDARAJ) JUDGE