Rajasthan HC Grants Time for Petition and Seeking Response from Illegal GST from Authorities

The responses from the GST department have been sought by the High Court of Rajasthan for the case of the illegal demand for GST and awarded the time to file the answer for the petition.

Mr Sharad Kothari, counsel appearing on behalf of M/s Shri Ganesh Traders, the petitioner, stated that the first appeal was decided against the petitioner, in which a challenge was made to the defendants’ improper demand. He claimed that, while the petitioner has a right to appeal to the second appellate authority, such authority has yet to be established.

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It is claimed that the second appellate authority has not yet been established and that the respondents are using coercion to recoup the unconstitutional demand. The petitioner has previously deposited 10% of the disputed tax amount while filing the first appeal and is prepared to submit 10% more.

Mr Hemant Dutt, counsel for the respondents, arrived and asked for more time to file a response to the writ petition, admitting that the second appellate authority had not yet been established.

Any individual who is dissatisfied with an order made against him under Sections 107 or 108 of the Central or State Goods and Services Tax Act may file an appeal with the Appellate Tribunal within three months of receiving the communication. Unfortunately, the GST Appellate Tribunal has not yet been established.

A Coram of Justices Vijay Bishnoi and Kuldeep Mathur allowed Mr Hemant Dutt time to prepare a response to the writ case. The Assessing Authority required the petitioner to deposit a further 10% of the disputed tax amount and provide security, other than cash and bank guarantee, for the remaining 80%.

The Court stated that “no coercive steps shall be taken against the petitioner to recover any amount under the impugned assessment order dated 25.02.2021 and appellate order dated 31.01.2023.”