GLIMPSE OF A LATEST VERDICT (GST CASE)Maxtile AAC Block vs State Tax OfficerOrder dated 23.04.2024 in W.P.No.10670/2024By Justice SENTHILKUMAR RAMAMOORTHYFacts:An Order dated 30.05.2023 was issued against the Petitioner by conforming the Tax Proposal pertaining to the discrepancy between the Petitioners’s GSTR 3B Returns and the Auto Populated GSTR 2A

GLIMPSE OF A LATEST VERDICT (GST CASE)
Maxtile AAC Block vs State Tax Officer
Order dated 23.04.2024 in W.P.No.10670/2024
By Justice SENTHILKUMAR RAMAMOORTHY
Facts:
An Order dated 30.05.2023 was issued against the Petitioner by conforming the Tax Proposal pertaining to the discrepancy between the Petitioners’s GSTR 3B Returns and the Auto Populated GSTR 2A. Against the said order, an appeal was filed by the Petitioner on 24.08.2023 along with requisite pre-deposit as per Section 107 of GST Act. The Authorities effected an attachment of the Immovable Properties of the Petitioner on 22.08.2023.
Contentions:
It is contended by the Petitioner that recovery measures should not be undertaken for a period of 3 months after the order in original is issued so as to enable the Tax Payer to file a Statutory Appeal. In this case, the order of attachment was issued within the said 3 months period. Hence it is not sustainable.
Findings:
It is evident that the Petitioner has made the requisite pre-deposit of 10/% of the disputed Tax demanded by remitting a sum of Rs.4,94,956/-. Once such a pre-deposit is made, under Sub-Section(7) of Section 107, recovery proceedings in respect of the balance amount shall be deemed to be stayed. In this case, without waiting for the Statutory period of 3 months, an attachment was effected of the Petitioner’s Immovable Property. Such attachment is contrary to the statutory prescriptions and cannot be sustained. Therefore, the Writ Petition is allowed, directing the 1st Respondent to release the attachment order over the immovable property of the Petitioner. The 2nd Respondent is further directed to delete the entry pertaining to the attachment from the Encumbrance Certificate relating to the property. These actions shall be completed within a maximum period of one week from the date of receipt of copy of the order.