M/s Skylight Man Power and Hospitality Services Versus The Commissioner, State Taxes and Excise and others 

Order Date – 10 January 2023

Facts –

• The petitioner, M/s Skylight Man Power and Hospitality Services has filed statutory appeal before the competent authority by depositing the pre-deposit amount as per Section 107(6) of the Act for the assessment years, 2019-20 & 2020-21.
• The petitioner has submitted that during the pendency of the writ, statutory appeal has also been preferred with regard to assessment year, 2021-22 and at the time of filing of the appeal, requisite amount has already been deposited in terms of Section 107(6) of the Act. 
• It was alleged that assessment year, 2018-19 is concerned, there is deficiency of around Rs.2,00,000/- with regard to the demand raised by the Department and petitioner has not preferred any appeal against the said assessment year.

Issues –

• Whether the provisional attachment order of the property of the petitioner passed under section 79 and 83 of the Act, was liable to continue after filing of the statutory appeals in terms of Section 107 of the Act.

Order –

• The Court observed that the petitioner as per Section 107(6) of the CGST Act has already deposited the requisite amount with the Department.
• So far as the legal proposition in issue is concerned, it is evident from a combined reading of Sections 107(6) and 107(7) of the Act that at the time of filing of the appeal, a sum equal to 10% of the remaining amount on taxes in dispute, in relation to which the appeal has been preferred, is required to be deposited and when the amount as envisaged under Section 107(6) of the Act is deposited, recovery proceedings for the balance amount shall remain stayed.   
• The petitioner has also made the pre-deposit under Section 107(6) of the Act, vis-à-vis, assessment year, 2021-22, then the attachment order of the immovable property of the petitioner as well as attachment of the debtors shall be revoked forthwith by the respondents.
• The appeal is disposed.