Orissa HC Disposes Writ Petition, Granting Petitioners Opportunity to Challenge GST Demand Until Appellate Tribunal Constituted [Read Order]

In the recent ruling the Orissa High Court, disposed of the writ petition by granting the petitioner, the opportunity to challenge the Goods and Service Tax(GST) demand until the Appellate Tribunal is constituted.

SKM and PP (J.V),the petitioner-assessee,faced a demand from the State authority regarding an alleged short payment of GST. Represented by Mr. Mansing, the petitioner initially filed an appeal against this demand, but the appeal was rejected. With no functioning GST Appellate Tribunal available to challenge the appellate order, the petitioner approached the High Court for relief.

In support of their case, the petitioner’s counsel referenced the precedent set in M/s. Maa Tarini Traders (W.P.(C) No. 42015 of 2023). In that case, the petitioners similarly contended that they were unable to appeal due to the non-constitution of the GST Appellate Tribunal. The court noted that the petitioners were entitled to challenge the demand orders but were effectively deprived of their statutory remedy because the Tribunal was not operational.

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The Division Bench in Maa Tarini Traders ordered that petitioners could secure a stay on recovery by depositing a specified amount, which would allow them to exercise their right to appeal once the Tribunal was established. It also stipulated that if the petitioners did not file their appeals within the designated timeframe following the Tribunal's constitution, the department would be permitted to proceed with recovery actions.

Mr. Das, representing the department, confirmed that the current petition was indeed covered by the Maa Tarini Traders ruling. Consequently, the High Court disposed of the writ petition by directing the petitioner-assessee to adhere to the same terms: they were required to make the necessary deposit to obtain relief and would have the opportunity to appeal once the Tribunal became functional.

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A coram of Arindam Sinha(Judge) and M.S.Sahoo(Judge) emphasized that failure to file the appeal within the specified timeframe after the Tribunal's establishment would allow the department to proceed with recovery actions.

With these directives, the court resolved the petition.

To Read the full text of the Order CLICK HERE

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