Interim Relief Granted in GST Appeal Due to Non-Constitution of Appellate Tribunal

By | January 25, 2025
(Last Updated On: January 25, 2025)

 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.

HIGH COURT OF ORISSA
Bhakta Ram Purohit
v.
Commissioner of CT and GST
Arindam Sinha and M.S. Sahoo, JJ.
W.P.(C) No.25715 of 2024
DECEMBER  16, 2024
P.C. Nayak, Adv. for the Petitioner. S. Das, Adv., Addl. Standing Counsel for the Respondent.
ORDER
1. Mr. Nayak, learned advocate appears on behalf of petitioner and submits, his client is aggrieved by order dated 31st May, 2024 made by the First Appellate Authority. He wants to appeal therefrom to the Tribunal but it has not yet been constituted. In the circumstances assessees and the department were complying with directions made on order dated 16th February, 2024 by the First Division Bench in a batch of writ petitions, lead case being WP(C) no.42015 of 2023 (M/s. Maa Tarini Traders v. State of Odisha and others).
2. The directions included requiring the assessee to deposit 10% of the disputed amount of tax on filing the appeal and further 20% of remaining disputed tax, for the impugned order to be stayed.
3. He submits, his client is up against State revenue. There was notification dated 16th August, 2024 made by Central revenue reducing latter deposit to 10%. Now, State revenue has correspondingly notified on 29th October, 2024. In the circumstances, the writ petition be disposed of as covered by order dated 16th February, 2024 (supra) with modification for deposit of 10% of remaining disputed tax for impugned order to remain stayed.
4. Mr. Das, learned advocate, Additional Standing Counsel appears on behalf of State revenue.
5. We accept submission made on behalf of petitioner regarding corresponding notification reducing requirement of the deposit to 10% of disputed tax for impugned first appellate order to remain stayed. The deposit be made accordingly.
6. The writ petition is accordingly disposed of.
Category: GST

About CA Satbir Singh

Chartered Accountant having 12+ years of Experience in Taxation , Finance and GST related matters and can be reached at Email : Taxheal@gmail.com