Interim Relief Granted in GST Appeal Due to Non-Constitution of Appellate Tribunal
Summary in Key Points:
- Issue: Whether an assessee can be granted interim relief in a GST appeal when the Appellate Tribunal has not yet been constituted.
- Facts: The assessee wanted to file an appeal against an order by the First Appellate Authority but could not do so because the Tribunal was not yet functional. Earlier, the court had ordered a 20% deposit of the disputed tax amount for a stay on the impugned order. However, subsequent notifications reduced this deposit requirement to 10%.
- Decision: The High Court, following the decision in Maa Tarini Traders v. State of Odisha, granted an interim stay on the impugned order, subject to the assessee depositing 10% of the disputed tax amount.
Decision:
The High Court ruled in favor of the assessee, modifying the earlier order regarding the deposit requirement for the interim stay. The court clarified that the assessee only needs to deposit 10% of the disputed tax amount to obtain a stay on the impugned order. This decision was based on the following:
- Non-Constitution of Tribunal: The assessee’s right to appeal was hindered by the non-constitution of the Appellate Tribunal.
- Revised Deposit Requirement: The Central and State revenue authorities had reduced the deposit requirement for a stay on the first appellate order from 20% to 10%.
- Following Precedent: The court followed the decision in Maa Tarini Traders v. State of Odisha, which granted interim relief in similar circumstances.
Important Note: This case highlights the High Court’s proactive role in ensuring access to justice for taxpayers, even when the designated appellate mechanisms are not yet functional. By granting interim relief and staying the impugned order, the court protects the assessee’s interests and upholds the principles of natural justice. This approach reflects a commitment to fairness and provides a practical solution to a common problem faced by taxpayers in the GST regime.