Ms Maheshwari Agencies Through Proprietor Sh Shyam Sunder Maheshwari vs. Union Of INDIA

Held

The Court, without examining the merits of the impugned orders, granted liberty to the petitioner to avail the remedy as provided by the respondent in paragraph 3 of the Circular No. 224/18/2024-GST dated July 11, 2024. The Court noted that the circular provides guidelines for recovery of outstanding dues in cases where the first appeal has been disposed of and the appellate tribunal is not functioning. Specifically, paragraph 3 of the circular states that if an appeal is filed in accordance with sub-section (8) of Section 112 of the CGST Act on payment of the prescribed pre-deposit, the recovery proceedings of the balance amount shall be deemed to be stayed till the disposal of the appeal as per sub-section (9) of Section 112 of the CGST Act. The writ petition was disposed of with this liberty granted to the petitioner.

Facts

The petitioner, Ms. Maheswari Agencies, through its proprietor Shri Shyam Sunder Maheswari, filed a writ petition challenging orders passed by the Assessing Officer and the Appellate Authority under the GST Act. The petitioner noted that an appeal remedy was available before the GST Appellate Tribunal under Section 112 of the GST Act, but this remedy was unavailable due to the Tribunal not functioning. The respondents brought to the Court's notice Circular No. 224/18/2024-GST dated July 11, 2024, which provides guidelines for recovery of outstanding dues when the first appeal has been disposed of and the appellate tribunal is not yet operational.

Key Issues

1. Whether the petitioner can avail the remedy provided in Circular No. 224/18/2024-GST dated July 11, 2024, for recovery proceedings in the absence of a functioning GST Appellate Tribunal, as contemplated by Section 112 of the CGST Act? Petitioner's Argument: The petitioner argued that the GST Appellate Tribunal is not functioning, rendering the statutory appeal remedy under Section 112 of the CGST Act unavailable. They sought recourse through the writ jurisdiction of the High Court. Revenue's Argument: The respondent revenue brought to the Court's notice Circular No. 224/18/2024-GST dated July 11, 2024, which provides guidelines for recovery of outstanding dues in cases where the first appeal has been disposed of and the appellate tribunal is not yet operational. They relied on paragraph 3 of the circular, which states that if an appeal is filed in accordance with sub-section (8) of Section 112 of the CGST Act with the prescribed pre-deposit, recovery proceedings for the balance amount shall be deemed stayed till the disposal of the appeal as per sub-section (9) of Section 112 of the CGST Act.