Case Title | Sharda Motors vs Union of India |
Court | Rajasthan High Court |
Honorable Judges | Justice Sandeep Mehta and Justice Kuldeep Mathur |
Citation | 2022 (7) GSTPanacea 183 HC Rajasthan W.P.(C) 11218/2022 |
Judgement Date | 28-July-2022 |
Council for Petitioner | Mr. Anil Bhansali |
Council for Respondent | Mr. Rajvendra Saraswat |
The High Court of Delhi, bench of Justices Rajiv Shakdher and Tara Vitasta Ganju held that We, thus, dispose of this appeal with the direction to the respondents not to recover any further amount towards interest from the appellant
FACTS OF THE CASE
There was a liability of tax in the sum of Rs. 35,44,614.55/- in respect of which the appellant had furnished the Bank Guarantee as well. There were various litigations pending between the parties and the appellant had also filed civil suit seeking restraint orders against the respondent-Union of India from encashing the Bank Guarantee. At this time, the Kar Vivadh Samadhan Scheme, 1998 (KVSS) scheme was introduced by the Government which entitled the defaulters to pay 50 per cent of the demand and settle their tax disputes.
- The appellant applied under the said Scheme but this application was rejected on the ground that the provisions of this scheme did not apply inasmuch as no Show Cause Notice was issued to the appellant which was pending at that time.
- The writ petition filed by the appellant has also been dismissed by the impugned order.
- In the meantime, the respondents recovered the entire amount by encashing the Bank Guarantee on 13.10.2003
COURT HELD
In view thereof, it is not necessary to go into the issue and we are of the opinion that having regard to the peculiar facts of this case and also that the appellant has some arguable case on merits, interest of justice would be subserved, if no interest is demanded. We, thus, dispose of this appeal with the direction to the respondents not to recover any further amount towards interest from the appellant.
ANALYSIS OF THE JUDGEMENT
By noticing the above order we analyse that pending dispute with respect to a matter the GST Authorities shall not recover any amount which is pending in the dispute.
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