Non-Constitution of GSTAT: Orissa HC orders to Deposit Entire Tax Demand as Interim Measure [Read Order]

In a recent decision the Orissa High Court ordered to deposit entire tax demand as interim measure after considering the fact of the non-constitution of Goods and Service Tax Appellate Tribunal (GSTAT).

The petitioner, M/s. Neelachal Udyog, has filed the writ petition challenging the first appellate order passed by the Joint Commissioner of State Tax (Appeal) CT & GST Territorial Range, Bhubaneswar, by which said authority has not admitted the appeal preferred by the petitioner, as the same is in contravention to sub-sections (1) & (4) of Section 107 of the GST Act and has rejected the appeal filed under sub-Section (1) of Section 107 of the Odisha Goods and Services Tax Act, 2017.

The Counsel for the petitioner contended that the petitioner is not liable to pay the tax and penalty and, as such, against the order passed by the first appellate authority though second appeal lies, the second appellate tribunal has not yet been constituted.

It was thus contended 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, this Court should entertain this writ petition.

Diganta Dash, Additional Standing Counsel vehemently contended that since there is delay in preferring the appeal, this 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 lapse of three months from the date of communication of order impugned therewith.

A Division Bench of Justices BR Sarangi and MS Raman observed that “Since the petitioner wants to avail the remedy under the provisions of law by approaching 2nd appellate tribunal, which has not yet been constituted, as an interim measure subject to the Petitioner depositing entire tax demand within a period of four weeks from today, the rest of the demand shall remain stayed during the pendency of the writ petition.”

To Read the full text of the Order CLICK HERE

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