Bank Account of Assessee Should Be De-freezed Since It Filed Appeal & Deposited 10% of Total Outstanding Demand | HC

Case Details: Jey Tech Moulds Dies v. Deputy Commissioner (GST)-II - [2024] 158 taxmann.com 15 (Madras)

Judiciary and Counsel Details

• • Krishnan Ramasamy, J.
  • S. Madhusudanan for the Petitioner.
  • T.N.C. Kaushik for the Respondent.

Facts of the Case

The petitioner was engaged in manufacturing of plastic moulds and dies. It had filed GST returns. However, the supplier of petitioner failed to make the payment of GST. The department proceeded against the petitioner and passed an order but it also freezed the bank account of the petitioner. It filed writ petition to de-freeze their bank account and submitted that it had filed an appeal before the Appellate Authority and paid 10% of the demand amount.

High Court Held

The Honorable High Court noted that as per provision of Section 107, if assessee had paid 10% of outstanding tax dues along with penalty, the GST proceedings would be automatically stayed. In the instant case, the petitioner had paid the pre-deposit amount and therefore, the revenue was supposed to de-freeze bank account of petitioner as per Section 107. Therefore, the Court directed the department to de-freeze the petitioner’s bank account.