Order Date – 16 June 2023

Parties: Liakhat Ali Mallick Vs The State of West Bengal & Ors.

Facts – 

• The Petitioner, Liakhat Ali Mallick, has deposited 10% of disputed tax while preferring an appeal before the appellate authority and before the expiry of the period for filing the appeal.
• However, a garnishee notice dated 13th February, 2023 was issued later the learned single bench has granted stay of the garnishee notice but has imposed a condition that the appellant has to deposit 20% of the interest liability.

Issue – 

• Whether the petitioner is liable to pay interest?

Order – 

• The Divisional Bench of Hon’ble High Court held that considering the facts and circumstances of the case and also the statutory requirement, which mandates payment of only 10% of the disputed tax, a condition need not be imposed by directing the appellant/petitioner to pay 20% of the interest.
• Accordingly, the appeal is allowed and that portion of the order passed by the learned Single Bench directing the appellant to pay 20% of the interest amount is set aside and direction is issued to the appellate authority to consider the appeal filed by the appellant on merits and in accordance with law after affording an opportunity of personal hearing.

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