Case Details: Liakhat Ali Mallick v. State of West Bengal - [2023] 152 taxmann.com 114 (Calcutta)
Judiciary and Counsel Details
- T. S. Sivagnanam, C.J. & Uday Kumar, JJ.
- Avra Mazumder & Suman Bhowmik for the Appellant.
- Anirban Ray, T. M. Siddiqui & Saptak Sanyal for the Respondent.
Facts of the Case
In the instant case, the assessee paid the entire tax demand and appeal has been preferred against the order passed by the department. However, the garnishee notice was issued and the assessee challenged the garnishee notice on the ground that entire tax demand has been paid before the writ court. The learned Single Bench granted stay of the garnishee notice but imposed a condition that the appellant had to deposit 20% of the interest liability. It filed intra-court appeal against the order.
High Court Held
The Honorable High Court noted that as per Section 107of the CGST Act, the aggrieved assessee is required to deposit 10% of the disputed tax. In the present case, the entire tax demand has been already paid and therefore, condition to pay 20% of interest liability need not be imposed. Therefore, it was held that portion of the order passed by the learned Single Bench directing the assessee to pay 20% of the interest amount was to be set aside.
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