The writ petition deserves to be allowed. Directions of the 1st respondent to encash bank guarantee and to forward the amount under the bank guarantee by demand draft is quashed and set aside.
Section 107 of the CGST Act, 2017---Appeal – Encashment of Bank Guarntee- The petitioner, who has suffered an order of confirmation of penalty by the respondent challenged the action of the authority in directing the respondent-Bank to invoke bank guarantee and to forward the demand draft of the value of the said bank guarantee to the 1st respondent. The petitioner counsel submitted that provisions of Section 107 provides for pre deposit and as per Section 78 he has time of three months for depositing the amount as per the assessment. Thus the direction contained in the order to the 2nd respondent directing him to encash the bank guarantee and forward the demand draft of the value of the bank guarantee to the 1st respondent is per se illegal. The petitioner is intending to file an appeal within two or three weeks though limitation for filing such statutory appeal is upto 15.05.2021.
Held that:- The Hon’ble High Court quashed and set aside the directions and directed the 2nd respondent shall not comply with the directions of the respondent to encash bank guarantee and to forward the amount under the bank guarantee by demand draft to the 1st respondent. However, the petitioner shall continue the bank guarantee till filing of the appeal.
The writ petition deserves to be allowed. Directions of the 1st respondent to encash bank guarantee and to forward the amount under the bank guarantee by demand draft is quashed and set aside.
Section 107 of the CGST Act, 2017---Appeal – Encashment of Bank Guarntee- The petitioner, who has suffered an order of confirmation of penalty by the respondent challenged the action of the authority in directing the respondent-Bank to invoke bank guarantee and to forward the demand draft of the value of the said bank guarantee to the 1st respondent. The petitioner counsel submitted that provisions of Section 107 provides for pre deposit and as per Section 78 he has time of three months for depositing the amount as per the assessment. Thus the direction contained in the order to the 2nd respondent directing him to encash the bank guarantee and forward the demand draft of the value of the bank guarantee to the 1st respondent is per se illegal. The petitioner is intending to file an appeal within two or three weeks though limitation for filing such statutory appeal is upto 15.05.2021.
Held that:- The Hon’ble High Court quashed and set aside the directions and directed the 2nd respondent shall not comply with the directions of the respondent to encash bank guarantee and to forward the amount under the bank guarantee by demand draft to the 1st respondent. However, the petitioner shall continue the bank guarantee till filing of the appeal.