The Gujarat High Court has halted the enforcement of dues, citing that despite the establishment of the GST Appellate Tribunal (GSTAT), it remains inactive.
Justices Biren Vaishnav and Mauna M. Bhatt noted that even though the Tribunal exists, it remains non-operational, yet authorities are proceeding with orders for debt recovery. They are demanding information from taxpayers regarding whether they have filed an appeal at all, leading to a contradiction among these authorities.
A petitioner contested a decision made by the Appellate Authority under the CGST. Given the absence of a functioning tribunal, the challenge against the decision was raised through a petition. Consequently, the office of the Superintendent, AR-V, Division-VI, began penalty recovery in line with the order.
The order explicitly required the petitioner to inform the authority whether an appeal or a stay application had been lodged against the OIA dated July 31, 2023, and whether the Appellate Authority had granted a stay of the order.
Recommended: Gujarat HC Suspends GST Levy Proceedings for Leasehold Rights Transfer to GIDC Land and Issues Notice to Dept
The authority’s stance was that in the absence of a stay on the recovery of dues, the petitioner was instructed to settle the outstanding amount.
Acknowledging the inactive state of the constituted tribunal, the court issued a notice and put a hold on the order that initiated the recovery process until the next scheduled hearing.
| Case Title | Rajkalp Mudranalya Private Limited Thro Kalpesh Maneklal Patel Versus Superintendent |
| Case No.: | R/Special Civil Application No. 18779 Of 2023 |
| Date | 26.10.2023 |
| Counsel For Petitioner | Uchit N Sheth |
| Gujarat High Court | Read Order |
