{"id":6431,"date":"2025-10-18T17:28:15","date_gmt":"2025-10-18T11:58:15","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=6431"},"modified":"2025-10-18T17:28:15","modified_gmt":"2025-10-18T11:58:15","slug":"hc-grants-conditional-stay-on-gst-demand-rs-20-lakh-deposit-required","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/hc-grants-conditional-stay-on-gst-demand-rs-20-lakh-deposit-required","title":{"rendered":"HC Grants Conditional Stay on GST Demand | Rs. 20 Lakh Deposit Required"},"content":{"rendered":"<pre><strong>Case Details: <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/gst\/101010000000409492\/recovery-of-gst-demand-stayed-conditionally-upon-deposit-of-rs-20-lakhs-unconditional-stay-not-granted-hc\">Christie\u2019s India Pvt. Ltd. Versus Union of Indian (2025) 35 Centax 128 (Bom.)<\/a><\/strong><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>M.S. Sonak<\/strong> &amp; <strong>Advait M. Sethna<\/strong>, JJ.<\/li>\n<li><strong>S\/Shri Tushar Jarwal, Daliya Singh<\/strong> &amp; <strong>Rahul Sateeja<\/strong>, Adv., for the Petitioner.<\/li>\n<li><strong>Ms Shruti Vyas, Shri Abhishek Mishra<\/strong> &amp; <strong>Ms Jyoti Chavan<\/strong>, Addl. G.P., for the Respondent.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The petitioner had challenged the constitutional validity of Section 16(2)(c) of the Central Goods and Services Tax Act, 2017, and the Maharashtra GST Act, 2017, contending that it violated Articles 14, 19(1)(g), and 300A of the Constitution. Alongside, the petitioner also challenged a GST demand order issued by the Assistant Commissioner, raising tax dues of Rs. 1 crore with an equivalent amount towards penalty and interest. The petitioner submitted that Rs. 21 lakhs had already been paid by the supplier and sought an unconditional stay on recovery, arguing that under appeal provisions, only a 10% pre-deposit would have been required to obtain a stay.<\/p>\n<h2><em>High Court Held<\/em><\/h2>\n<p>The Bombay High Court noted that at least three High Courts had already upheld the constitutional validity of Section 16(2)(c) and that the State should not be deprived of its dues merely due to disputes between the petitioner and the supplier regarding liability. The payment of \u20b921 lakhs by the supplier did not discharge the entire tax liability, and the petitioner could pursue recovery from the supplier separately. Observing that this was not a fit case for an unconditional stay, the Court ordered that recovery of the impugned demand be stayed subject to the petitioner depositing Rs. 20 lakhs within six weeks, pending adjudication of the writ petition.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Christie\u2019s India Pvt. Ltd. Versus Union of Indian (2025) 35&hellip;<\/p>\n","protected":false},"author":8,"featured_media":6443,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,60,189],"tags":[],"class_list":["post-6431","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst","category-news","category-gst-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>HC Grants Conditional Stay on GST Demand | Rs. 20 Lakh Deposit Required<\/title>\n<meta name=\"description\" content=\"Bombay HC refuses unconditional stay on \u20b91 crore GST demand; recovery stayed only if petitioner deposits \u20b920 lakhs within six weeks.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.centaxonline.com\/blog\/hc-grants-conditional-stay-on-gst-demand-rs-20-lakh-deposit-required\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"HC Grants Conditional Stay on GST Demand | Rs. 20 Lakh Deposit Required\" \/>\n<meta property=\"og:description\" content=\"Bombay HC refuses unconditional stay on \u20b91 crore GST demand; 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