HC Dismissed Writ Petition to Allow Refund of Excess Amount Over 10% of Disputed Tax Recovered from Bank Account

Case Details: Stallion Energy (P.) Ltd. v. Union of India - [2023] 152 taxmann.com 211 (Gujarat)

Judiciary and Counsel Details

• • Vipul M. Pancholi & Devan M. Desai, JJ.
  • Viral V. Dave for the Petitioner.
  • Pranav Trivedi for the Respondent.

Facts of the Case

The department issued a show cause notice under Section 73 wherein the assessee was directed to make payment of amount determined as payable. Thereafter, an order of provisional attachment of the property under Section 83 was passed and an amount was recovered from bank account of assessee by an attachment order.

The assessee preferred an appeal before Appellate Authority against the impugned order and requested department through various submission to refund the remaining amount. However, the amount was not refunded and it filed writ petition before the High Court.

High Court Held

The Honorable High Court noted that as per Section 107, the assessee was required to pre-deposit 10% of amount of tax disputed. However, there was delay in preferring the appeal and amount was recovered in excess of 10% of disputed demand.

The Court further noted that as per Section 73(9) read with Sections 78 and 107 of CGST Act, if appeal filed by assessee is allowed by Appellate Authority, it is always open for assessee to make such request before Appellate Authority to refund amount. Therefore, the Court held that the petition was not to be entertained and accordingly, dismissed.