Non-Constitution of GST Appeal: Orissa HC directs to Pay Entire Tax Demand before Availing Second Appeal [Read Order]

The Cuttack bench of the Orissa High Court directed the petitioner to pay the entire tax demand before availing a second appeal. 

Biswal Sales, the petitioner filed the writ petition challenging the first appellate order dated passed by the Joint Commissioner of State Tax (Appeal) by which the authority had not admitted the appeal preferred by the petitioner. 

N.K. Dash, the counsel for the petitioner contended that the petitioner was not liable to pay the tax and penalty and, as such, against the order passed by the first appellate authority though the second appeal lies and the second appellate tribunal had not yet been constituted. 

Further submitted that the petitioner had already deposited 10% of the demanded tax amount before the first appellate authority and as there was no second appellate forum, this Court should entertain the writ petition filed by the petitioner. 

Sunil Mishra, the counsel for the department contended that the case stands on a different footing and the petitioner was liable to pay the tax and the petitioner wants to avail the remedy by preferring to appeal before the second appellate tribunal than the petitioner was liable to pay 20% balance disputed tax for consideration of its appeal by the second appellate tribunal. 

The Court observed that since the petitioner wanted to avail the remedy under the provisions of law by approaching the second appellate tribunal, which had not yet been constituted, an interim measure subject to the petitioner depositing the entire tax demand was necessary. 

The two-member bench comprising B.R Sarangi and M.S Raman held that the petitioner had to pay the entire demand of tax before availing the second appellate tribunal.

To Read the full text of the Order CLICK HERE

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