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Stay order on order passed by respondent rejecting claim for input tax credit claimed by petitioner under Section 16 of CGST Act.

Section 16 of the CGST Act, 2017 — Input Tax Credit —–The petitioner challenged the assessment order as well as the appellate order passed under Section 74 of the Act thereby rejecting its claim for ITC under Section 16 of the Act. The counsel for the petitioner submitted tax invoice and other requisite documents to demonstrate the right of the petitioner to claim ITC. The court observed that the matter requires consideration. The counsel further submitted that the petitioner had deposited 10% of the disputed tax liability in terms of Section-107(6) of the Act and the appeal before the Tribunal (when constituted) would be maintainable upon deposit of 20% of the remaining amount of tax. The petitioner is willing to deposit that amount. The counsel for respondent requested for and granted four weeks' time to file counter affidavit. Held that:- The Hon’ble High Court listed the matter thereafter and directed that subject to the petitioner depositing 20% of the amount of tax in dispute within three weeks, recovery of the balance amount shall remain stayed.
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