Viability Gap Fund taxability under GST draws interim protection against recovery, subject to partial deposit.

Challenge to an order under the Odisha GST Act concerned whether Viability Gap Fund receipts were subsidy outside "consideration" and whether the dispute required factual inquiry or use of an alternate statutory remedy. At the notice stage, the HC recorded the rival positions on taxability and jurisdiction but did not decide the levy on merits. It granted limited interim protection against coercive recovery of the remaining demand, subject to partial deposit by the stipulated date.

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Issues: Challenge to an order passed under Section 74(9) of the Odisha Goods and Services Tax Act, 2017, including the petitioner's contention that the amount received as Viability Gap Fund was a subsidy outside the scope of "consideration" and the respondents' objection that the matter involved disputed facts and an alternate statutory remedy.

Analysis: The matter was taken up at the notice stage. The Court noticed the rival contentions on the taxability of the Viability Gap Fund and the plea regarding the appropriate taxing authority, but did not render a final adjudication on the merits of the levy or jurisdiction. Pending further hearing, the Court granted limited interim protection against coercive recovery on condition of a partial deposit.

Outcome: Notice was issued and interim protection against coercive recovery of the remaining demand was granted subject to deposit of Rs. 65 lakhs by the stipulated date.

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