The respondents should not invoke bank guarantee furnished by the petitioner till filing of the statutory appeal by the petitioner.
Section 107 of the CGST Act, 2017---Appeal -- The Petitioner challenged order of detention. The goods were released vide release order on furnishing bank guarantee by the petitioner. After adjudication order has been issued vide which respondent had directed the petitioner to pay the IGST tax amounting to Rs. 4,25,181/-. The petitioner counsel submitted that the petitioner has time of three months' for preferring an appeal under Section 107 and he is intending to prefer the appeal along with stay petition. The respondents are invoking the bank guarantee furnished by the petitioner for release of the goods. He further submitted that the respondents be restrained from encashing the bank guarantee till filing of the statutory appeal by the petitioner. The respondent counsel opposed the writ petition by contending that there is determination of the amount under said order. The court observed that in terms of Section 107 the petitioner has time of three months to challenge the order which is received by the petitioner on 20.03.2021.
Held that:- The Hon’ble High Court directed that if the petitioner files statutory appeal challenging the order within the prescribed period of limitation, then the respondents should not invoke bank guarantee furnished by the petitioner for a period of one week after filing of the statutory appeal.
The respondents should not invoke bank guarantee furnished by the petitioner till filing of the statutory appeal by the petitioner.
Section 107 of the CGST Act, 2017---Appeal -- The Petitioner challenged order of detention. The goods were released vide release order on furnishing bank guarantee by the petitioner. After adjudication order has been issued vide which respondent had directed the petitioner to pay the IGST tax amounting to Rs. 4,25,181/-. The petitioner counsel submitted that the petitioner has time of three months' for preferring an appeal under Section 107 and he is intending to prefer the appeal along with stay petition. The respondents are invoking the bank guarantee furnished by the petitioner for release of the goods. He further submitted that the respondents be restrained from encashing the bank guarantee till filing of the statutory appeal by the petitioner. The respondent counsel opposed the writ petition by contending that there is determination of the amount under said order. The court observed that in terms of Section 107 the petitioner has time of three months to challenge the order which is received by the petitioner on 20.03.2021.
Held that:- The Hon’ble High Court directed that if the petitioner files statutory appeal challenging the order within the prescribed period of limitation, then the respondents should not invoke bank guarantee furnished by the petitioner for a period of one week after filing of the statutory appeal.