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2020 ] AGARWAL TIMBER SUPPLIERS v. STATE OF UTTARAKHAND 63
of tax in dispute arising from the said order, in relation to which the appeal has
been filed. Section 107(7) of the CGST Act stipulates that, where the appellant has
paid the amount under sub-section (6), the recovery proceedings for the balance
amount shall be deemed to be stayed.
8. On a conjoint reading of sub-sections (1), (6) and (7) of Section 107 of
the CGST Act, it is evident that, while an appeal can be filed against any order or
decision of an adjudicating authority, the pre-condition, for such an appeal to be
filed, is payment of the demanded tax or penalty and 10% of the disputed
amount.
9. In the present case, there is no dispute regarding tax and it is the ap-
pellant-writ petitioner’s case that the tax in its entirety has been paid to the Cor-
poration which, in turn, is obligated to remit the said amount to the State Tax
Department. Since the appellant-writ petitioner disputes levy of penalty in its
entirety, they would, in terms of Section 107(6) of the CGST Act, only be required
to deposit 10% of such penalty and as a result, in terms of sub-section (7) of Sec-
tion 107 of the CGST Act, the remaining penalty need not be paid. That does not,
however, solve the problem which the appellant-writ petitioner faces i.e. for re-
lease of the goods detained by the respondent-authorities. If, on the other hand,
he were to comply with the demand notice issued under Section 129(1) of the
CGST Act, then, in terms of Section 129(5) of the CGST Act, on payment of the
amount referred to in sub-section (1), all proceedings in respect of the notice
specified in sub-section (3) shall be deemed to be concluded, in which event the
goods would be released. Would conclusion of all proceedings mean that the
appellant would not be entitled to prefer an appeal?
10. It is unnecessary for us to examine this contention in the present
proceedings. Suffice it, in the facts and circumstances of the present case, to mod-
ify the order of the Learned Single Judge and, instead, direct the appellant-writ
petitioner to deposit the entire amount of penalty i.e. for a sum of Rs. 1,70,688/-
with the concerned authorities, and furnish proof of deposit of the said amount
along with the Appeal to be preferred under Section 107(1) of the CGST Act. On
such deposit, and on an Appeal being preferred thereafter within the period of
limitation prescribed under Section 107(1) of the CGST Act, the Appeal shall be
entertained by the Appellate Authority, and shall be adjudicated on its merits. As
soon as an Appeal is preferred by the appellant-writ petitioner, enclosing thereto
proof of payment of total penalty amount of Rs. 1,70,688/-, the subject goods
shall be released in their favour.
11. It is made clear that, in case the Appeal is decided in the appellant-
writ petitioner’s favour, they shall then be entitled for refund of the amount de-
posited by them pursuant to the order now passed by us.
12. Needless to state that it is always open to the appellant-writ peti-
tioner to raise all such contentions, as are available to them in law, before the
Appellate Authority.
13. The Special Appeal is, accordingly, disposed of. No costs.
14. Let a certified copy of this order be issued to the parties, on pay-
ment of the prescribed charges, by 7-8-2019.

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GST LAW TIMES  2nd April 2020  225