On filing second appeal with 10% pre-deposit, bank attachment after first appeal rejection must be lifted { S. S. Civil Construction (P.) Ltd. v. Assistant Commissioner of Revenue, State Tax [2026] 182 taxmann.com 359 (Calcutta HC)
Facts:
- Assessee’s first appeal under GST was rejected by the appellate authority.
- Thereafter, the department attached the assessee’s bank account for recovery of dues.
- The assessee intended to file a second appeal before the GST Appellate Tribunal and expressed readiness to deposit 10% of the remaining disputed tax as required under Section 112 of the CGST Act.
Issue
Whether the bank account attachment can continue when the assessee is ready to file a second appeal with the statutory 10% pre-deposit, and whether recovery proceedings should be stayed in such a situation.
Held
- The Calcutta High Court held that once the assessee deposits 10% of the balance disputed tax for filing a second appeal, the recovery proceedings are deemed to be stayed.
- Consequently, the attachment of the assessee’s bank account must be lifted forthwith.
- The assessee was granted liberty to prefer an appeal before the Appellate Tribunal after making the statutory pre-deposit
