GST / Indirect Tax : Whether Stay is to be Granted without Depositing the Amount of Penalty ?

GST / Indirect Tax : Whether Stay is to be Granted without Depositing the Amount of Penalty ?

In a case where 20% of disputed amount was directed to be deposited for seeking stay, the Apex Court has dismissed the petition filed by assessee against the Judgment of High Court.

In this case, proceedings under section 127, read with section 122 of the UPGST Act, 2017 were initiated against the petitioner on the basis of the survey on the ground that the tax invoice does not bear the number of biltee. It was argued by assessee that there is no requirement under Rule 46 of the UPGST Rules to mention the biltee number on the tax invoice and therefore, taking adverse against the petitioner is illegal. High Court had directed the petitioner in Varun Enterprises v. Assistant Commissioner [2024] GCtR 76555 (Allahabad) that coercive steps will not be taken if assessee deposits 20% of disputed amount. Challenge made to HC's Order was dismissed in Varun Enterprises v. Assistant Commissioner [2025] GCtR 1469 (SC).