GST Tribunal Not Constituted: Orissa High Court Condones Delay And Stays GST Demand

The Orissa High Court stayed the Goods and Service Tax (GST) demand subject to deposit of tax as the GST Tribunal is not constituted.

The bench of Justice B.R. Sarangi and Justice M.S. Raman has observed that since the petitioner wants to avail the remedy under the provisions of law by approaching the 2nd appellate tribunal, which has not yet been constituted, as an interim measure subject to the petitioner depositing the entire tax demand within a period of four weeks, the rest of the demand shall remain stayed during the pendency of the writ petition.

The petitioner/assessee filed the writ petition challenging the first appellate order passed by the Joint Commissioner of State Tax, CT, and GST Territorial Range, Angul. The 1st appellate authority did not admit the appeal preferred by the petitioner, as it was in contravention of Sections 107(1) and (4) of the GST Act, and had rejected the appeal filed under Section 107 (1) of the Odisha Goods and Services Tax Act, 2017.

The petitioner contended that petitioner is not liable to pay the tax and penalty and, as such, is against the order passed by the 1st appellate authority. Though the second appeal lies, the 2nd appellate tribunal has not yet been constituted.

The petitioner submitted that the petitioner has already deposited 10% of the demanded tax amount before the first appellate authority, and as there is no second appellate forum, the High Court should entertain the writ petition.

The department contended that since there is a delay in preferring the appeal, the Court may not be in a position to condone the delay beyond four months, particularly when appellate authority has not been vested with discretion to condone the delay beyond one month after a lapse of three months from the date of communication of the order impugned therewith. The case stands on a different footing, and the petitioner is liable to pay the tax. In the event the petitioner wants to avail of the remedy by preferring an appeal before the 2nd appellate tribunal, then the petitioner is liable to pay 20% of the balance of the disputed tax for consideration of its appeal by the 2nd appellate tribunal.

The court said that since the appellate tribunal is not yet created, interim relief of stay was granted in cases where the assessee wants to appeal an order made by the first appellate authority, subject to the assessee submitting the necessary tax amount.

Case Title: M/s. Laxman Barik Versus Joint Commissioner of State Tax (Appeals)

Case No.: W.P (C) No. 10587 of 2023 And I.A. No. 4924 of 2023

Date: 18.04.2023

Counsel For Petitioner: R. Ghosh

Counsel For Respondent: Sunil Mishra

Click Here To Read The Order