GST DAILY – 186

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HC directed Revenue not to invoke bank guarantee submitted to pay penalty as no GST tribunal was constituted

 THE HON’BLE KERALA HIGH COURT in the case of AMA (P.) Ltd. V/s State of Kerala, JANUARY 10, 2024

👉 Issue:-

✔️ Which types of remedies available for the non constitution of GST Tribunal?

 👉 The Hon’ble High Court Judgement:-

✔️ Assessee challenged assessment order, appellate order, and demand notices related to penalty proceedings under Section 129(1) of CGST/SGST Act, 2017, wherein Revenue Authority imposed penalty

✔️ Assessee deposited 25% of penalty at time of appeal. Assessee’s bank guarantee was threatened to be invoked for non-payment of remaining amount – Assessee approached High Court due to absence of constituted GST Tribunal

✔️ High Court admitted writ petition and issued an interim order – Revenue Authority was directed not to invoke assessee’s bank guarantee until disposal of petition – Assessee was directed to deposit a further 10% of assessed penalty

Section 129(1) of Central Goods and Services Tax Act, 2017