The Assistant Commissioner Of CGST vs. Magma Fincorp LTD And Others
Held
The High Court found no reason to interfere with the impugned orders dated 3rd November 2020 and 16th December 2020, except to modify the condition of the stay of recovery. The stay would be conditional upon the respondent (Magma Fincorp Ltd.) not discharging or encashing their term deposit of over 6 crore with the State Bank of India. This condition would remain in effect until the disposal of the writ application or until further orders from the learned single judge, whichever occurred earlier. The respondent provided an undertaking to this effect, and the appellant was directed to inform the bank accordingly. The parties were granted liberty to request the learned single judge to hear the writ application expeditiously.
Facts
The appeals before the High Court at Calcutta concerned orders dated 3rd November 2020 and 16th December 2020. The appellant was The Assistant Commissioner of CGST And CX, Central Tax, Park Street Division, Kolkata South, and the respondent was Magma Fincorp Ltd. (formerly known as Magma Shrachi Finance Ltd.). The appeals arose from a writ application. The High Court was considering an appeal against the impugned orders, which had granted a stay of recovery. The court noted that the stay of recovery was conditional upon the respondent not discharging or encashing their term deposit of over 6 crore with the State Bank of India until the disposal of the writ application or further orders.
Key Issues
1. Whether the stay of recovery granted by the impugned orders dated 3rd November 2020 and 16th December 2020 was appropriate, and if so, what conditions should be imposed. The petitioner (Assistant Commissioner of CGST) likely argued for a modification or vacation of the stay, or for stricter conditions to secure the revenue. The respondent (Magma Fincorp Ltd.) would have argued for the continuation of the stay as granted, or for its terms to be upheld. The judgment does not explicitly detail the arguments of each side beyond the outcome concerning the stay and the undertaking provided by the respondent.
AI-generated summary — verify with the full judgment below
23-12-2020 Subrata Item no.8 & 9 IN THE HIGH COURT AT CALCUTTA Civil Appellate Jurisdiction Appellate Side M.A.T.No.764 of 2020 The Assistant Commissioner of CGST And CX, Central Tax, Park Street Division, Kolkata South -vs- Magma Fincorp Ltd. (formerly known as Magma Shrachi Finance Ltd.) & Ors.
With CAN No.1 of 2020 And CAN No.2 of 2020 With MAT No.824 of 2020 Mr. Bhaskar Prasad Banerjee Mr. Abhradip Maity …for the appellant Mr. J.K. Mittal Mr. Paritosh Sinha Ms. Vandana Mittal Mr. Amitava Mitra Mr. Parag Chaturvedi Ms. Antara Chaudhuri …for respondent no.1 These two appeals, involving a short point, are taken up for hearing dispensing with all formalities.
We find no reason to interfere with the impugned orders dated 3rd November 2020 and 16th December 2020, except to the extent that the stay of recovery ordered would be conditional upon the respondent not discharging or encashing their term deposit having a present balance of over 6 crore with the State Bank of India, Commercial Branch, Kolkata (A/c No.39800969512), until disposal of the writ application or until further orders of the learned single judge, whichever is earlier. Learned counse
The judgment continues below.
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