HC Directed Refund of Amount Encased by Tax Authorities as No GSTAT Was Constituted to File Appeal

Case Details: Cultgear (P.) Ltd. v. Commercial Tax Officer (Enf) - [2024] 162 taxmann.com 490 (Karnataka)

Judiciary and Counsel Details

• • S.R. Krishna Kumar, J.
  • Smt. Disha & P.B. Harish Advs. for the Petitioner.
  • Hema Kumar, AGA for the Respondent.

Facts of the Case

The petitioner was engaged in the business of manufacturing and trading of sports goods. The department issued SCN for demand of tax along with interest and penalty. It filed reply to SCN but the demand was confirmed along with interest and penalty. It filed appeal but the same was rejected. It filed writ petition against the order.

High Court Held

The Honorable High Court noted that the petitioner had challenged the order on the ground that it was not able to prefer appeal against the impugned order since the Appellate Tribunal had not been constituted so far. The Court noted that as and when the Appellate Tribunal would be constituted, the petitioner would challenge the impugned order by filing a statutory appeal.

The Court further noted that the department had also submitted that no prejudice would be caused to the petitioner since the department shall refund a sum of Rs. 11,21,840/- back to the petitioner as directed by this Court. Therefore, the Court directed the department to refund the amount and the petitioner shall furnish a fresh bank guarantee within a period of one week from the date of refund.