Facts of the Case

Royal Calcutta Golf Club challenged an order dated 24th January, 2024 passed by the Appellate Authority under Section 107 of the WBGST/CGST Act, 2017. Since the GST Appellate Tribunal under Section 112 was yet to be constituted, the Court held that the writ petition itself needed to be heard. Under challenge was a demand raised in Form APL-04, alongside the applicability of the amendment to Rule 88B of the CGST Rules, 2017 (notified 10th July, 2024) and the recommendations of the 53rd GST Council meeting held on 22nd June, 2024, both concerning computation of interest on delayed payment.

Issues Involved

  1. Whether the petitioner makes out a prima facie case for interim protection pending final adjudication, given the non-constitution of the GST Appellate Tribunal.
  2. Whether the amendment to Rule 88B (proviso inserted with effect from 10th July, 2024) applies to the petitioner's case, or is purely prospective as contended by the Revenue.

Petitioner's Arguments

  • In light of the amendment to Rule 88B and the 53rd GST Council's recommendations, the petitioner had made out a prima facie case warranting a stay of the demand raised in Form APL-04.

Respondent's Arguments

  • The Revenue contended that the amendment to Rule 88B is only prospective and therefore affords the petitioner no relief.

Court Order / Findings

  • Considering that the GST Appellate Tribunal was yet to be constituted, the Court held the writ petition maintainable and required to be heard.
  • On a prima facie view of the Rule 88B amendment and the balance of convenience, it stayed the demand dated 24th January, 2024 (Form APL-04) during the pendency of the writ petition or until further orders, whichever is earlier.
  • The Court directed exchange of affidavits, granting the Revenue four weeks after the annual vacation to file its affidavit-in-opposition and the petitioner two weeks thereafter for its reply.

Important Clarification

  • Pending constitution of the GST Appellate Tribunal, a writ petition challenging an appellate order under Section 107 is maintainable, and where a genuine and unresolved question exists on the retrospective versus prospective operation of a beneficial amendment such as the Rule 88B proviso, courts may grant interim protection against recovery without finally deciding the point.

Sections Involved

  • Section 107 of the WBGST/CGST Act, 2017 — appeal to Appellate Authority.
  • Section 112 of the WBGST/CGST Act, 2017 — Appellate Tribunal.
  • Rule 88B of the CGST Rules, 2017 — manner of calculating interest on delayed payment of tax.

Decision – In Favour of

Disposed of by way of interim relief in favour of the Assessee (demand stayed); final merits reserved for hearing.

Case Details

High Court at Calcutta; WPA 22906 of 2024; Coram: Hon'ble Mr. Justice Raja Basu Chowdhury; Date: 10th September, 2025.

Link to Download the Order

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