The Cuttack bench of the Orissa High Court held that no coercive action shall be taken against the petitioner during the pendency of the writ petition for the Goods and Service Tax arrears.
Chirag Industries, the petitioner filed a writ petition against the penalty and fine imposed by the first appellate tribunal for nonpayment of the remaining service tax. Thus the petitioner challenged the imposition of penalty and fine by the first appeal authority before the High Court of Orissa.
P.K. Harichandan, the counsel for the petitioner contended that the current writ petition was filed before the High Court because the Second Appellate Tribunal had not yet been constituted.
It was further submitted that the petitioner already paid 10% of the service tax and the remaining 20% of the service tax was not paid due to some personal issues.
Also contended that the petitioner wanted some more time to pay the remaining amount of Goods and Service Tax (GST).
Diganta Dash, the counsel for the revenue department relied on the decisions made by the lower authorities and contended that the non-payment of the amount of tax by the petitioner was against the law and liable to be fined.
It was also submitted that the penalty imposed by the first appellate tribunal was as per the law and liable to be sustained.
The two-member bench comprising B.R Sarangi and M.S Raman held that no coercive action shall be taken against the Petitioner during the pendency of the writ petition so far as the impugned demand is concerned.
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