Macwell Food Products Private LTD. vs. Union Of INDIA

Held

The Court disposed of the Writ Petition, granting liberty to the petitioner to avail the remedy provided in para 3 of the Circular dated 11.07.2024. The Court noted that the impugned order itself mentioned that it was appealable before the GST Appellate Tribunal. The petitioner had deposited 10% of the tax amount, as stipulated in the Circular. The Court acknowledged the petitioner's concern about the uncertain operational date of the GST Appellate Tribunal but ultimately directed the petitioner to pursue the appellate remedy. The interim order, which had stayed the recovery of interest and penalty subject to deposit, was directed to continue until the Tribunal considers the matter for interim relief. The Court did not decide the merits of the original challenge to the order dated 14.01.2025.

Facts

The petitioner, MACWELL FOOD PRODUCTS PRIVATE LTD., filed a Writ Petition challenging an order dated 14.01.2025. The respondents, Union of India and others, sought disposal of the petition in light of a Circular dated 11.07.2024 and a previous High Court order in a similar case. The petitioner had deposited 10% of the tax amount as per the Circular. Initially, the Court had stayed the recovery of interest and penalty, subject to a deposit of Rs. 3,53,51,777/-, which was later clarified to be 10% of that amount. The petitioner argued that the GST Appellate Tribunal's functioning date was uncertain, and the petition should be decided on merits. The amount directed by the Court had been deposited.

Key Issues

1. Whether the Writ Petition is maintainable in light of the availability of an appeal before the GST Appellate Tribunal, as per the impugned order and Circular dated 11.07.2024? 2. Whether the Writ Petition should be decided on merits, given the uncertainty regarding the operational commencement of the GST Appellate Tribunal? Petitioner's Contentions: The petitioner argued that the Writ Petition should be decided on its merits because the date from which the GST Appellate Tribunal would start functioning was not certain. They relied on the fact that they had deposited 10% of the tax amount as directed by the Court and the Circular. Revenue/State's Contentions: The respondents contended that the Writ Petition should be disposed of in light of the Circular dated 11.07.2024 and the High Court's order in M/s Sai Steel Industries. They argued that the impugned order was appealable before the GST Appellate Tribunal, and the petitioner had already deposited 10% of the tax amount, fulfilling a condition mentioned in the Circular.