Taxpayer Wins Partial Relief: 20% Tax Deposit Secures Stay and Challenges GST Assessment Based on WAMIS Data

The HC allowed partial relief in a GST tax dispute, directing the petitioner to deposit 20% of the disputed tax amount to obtain a stay on coercive action. The court halted proceedings on a subsequent tax notice and provided an opportunity for the petitioner to challenge the tax liability computation based on WAMIS data and NIL returns, while preserving the right to contest the appellate order's findings.

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Issues:
Challenging appellate order under Section 107 of the OGST Act, 2017 & order for rectification under Section 116 - consideration of taxable turnover and tax liability. Subsequent notice under Section 73 for a different period - merger of adjudication order in appellate order. Obtaining figures from WAMIS for determining tax liability based on NIL returns. Request for time to file a counter affidavit for contentious issues. Tribunal constitution delay under Section 109 - direction for depositing 20% tax amount for stay of coercive action.

Analysis:
The judgment pertains to a writ petition challenging an appellate order dated 12th May, 2021 under Section 107 of the Odisha Goods & Services Tax Act, 2017, and an order for rectification under Section 116. The petitioner contended that the Appellate Authority erroneously computed the tax liability by not considering the taxable turnover figure. The appeal was related to a tax period from April 2018 to March 2019, but a subsequent notice dated 13th September, 2021 was issued for a different period (December 2018) under Section 73, which the petitioner argued was not legally tenable due to the merger of the adjudication order in the appellate order.

The petitioner's counsel highlighted the discrepancy between the appellate order and the subsequent notice, emphasizing that the figures were obtained from the Works and Accounts Management Information System (WAMIS) as the petitioner had filed returns with NIL figures. On the other hand, the Additional Standing Counsel for the CT & GST Organization defended the tax liability determination based on the WAMIS data and requested time to file a counter affidavit for the contentious issues raised in the writ petition.

Considering the delay in constituting the Tribunal under Section 109 of the OGST Act, 2017, the court directed that no coercive action shall be taken against the petitioner if 20% of the tax amount determined by the Appellate Authority is deposited. The court also ordered a stay on further proceedings related to the notice issued under Section 73 until the next date of hearing. The judgment reflects a detailed analysis of the legal issues surrounding the computation of tax liability, the merger of adjudication orders, and the procedural aspects related to challenging appellate orders under the GST Act.

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