Section 73/74 of the CGST Act, 2017 — Demand —-- The intra-Court appeal is filed against the order dated 10.06.2022, whereunder it was directed that there will be a conditional stay of the impugned adjudication subject to deposit of 10% of the demand in question within a time frame and if the appellants comply with the same, the respondents were directed not to initiate any coercive action against the appellants. The court observed that the direction issued by the learned Writ Court by directing the deposit of 10% of the demand in question should be construed to be in compliance of Rule 51 of the Rules, which gives power to the Court to grant stay of realisation of any amount assessed as tax subject to the condition that the aggrieved party gives security and such security must be in satisfaction of the Court. Therefore, the learned Single Bench rightly exercised its discretion and bearing in mind the mandate in Rule 51 has issued a direction. The direction to deposit 10% of the entire demand would be onerous as had the appellants file appeals under Section 107 of the Act, the appellants were required to deposit only 10% of the tax in dispute.

Held that:- The Hon’ble High Court modified the directions to deposit of 10% of the tax in dispute. The appellants are granted 30 days’ time to make the deposit before the appropriate authority and if the same is complied with, no coercive action shall be taken against the appellants for recovery of the balance amount as demanded.