The Madhya Pradesh High Court has stayed the recovery of interest and penalty amount subject to payment of Rs.3,53,51,777 as the Goods and Service Tax Appellate Tribunal (GSTAT) is still not constituted.
The bench of Justice Gajendra Singh and Justice Vivek Rusia has prima facie observed that the petitioner has wrongly been imposed a penalty because the petitioner voluntarily informed its jurisdictional R.O. through its letter about appropriate classification of its mouth fresheners under HSN Chapter Head 2008.
The petitioner submitted that during the pendency of the petition, the effect of order be stayed because at present, the petitioner is not having remedy of appeal before the GST Appellate Tribunal.
The department has produced the copy of Circular No.224/18/2024 – GST dated 11.07.2024, by which the guidelines for recovery of outstanding dues have been issued till the Appellate Tribunal comes into operation. In view of the guidelines, in case the taxpayer does not make payment of the amount equal to the amount of pre-deposit or does not provide the undertaking/declaration to the proper officer, then it is presumed that taxpayer is not willing to file an appeal against the order of appellate authority.
The court while listing the matter after four weeks, stayed the recovery of interest and penalty amount was subject to payment of Rs.3,53,51,777.
Case Details
Case Title: Macwell Food Products Private Ltd. Vs Union Of India And Others
Case No.: WP No. 10727 of 2025
Date: 28-04-2025
Counsel For Petitioner: Govind Krishna Dixit
Counsel For Respondent: Prasanna Prasad
