GST Appeal Dismissed: Petitioner Must Deposit Full Tax Demand Within 15 Days, Partial Stay Granted Pending Writ

The HC examined a GST appeal challenging a tax order. Due to delay in filing and absence of a 2nd appellate tribunal, the court ordered the petitioner to deposit the entire tax demand within 15 days. The remaining demand was stayed pending writ petition resolution, with the matter to be re-listed in two weeks.

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Issues involved: Challenge to 1st appellate order under GST Act, delay in appealing, constitution of 2nd appellate tribunal.

Summary:

Challenge to 1st Appellate Order:
The petitioner filed a writ petition challenging the 1st appellate order dated 17.03.2023 passed by the Joint Commissioner of State Tax (Appeal), Balasore. The authority did not admit the appeal, citing contravention to sub-sections (1) & (4) of Section 107 of the GST Act. The petitioner contended that they are not liable to pay the tax and penalty. The 2nd appellate tribunal has not yet been constituted, hence the writ petition was entertained.

Delay in Appealing:
The Standing Counsel argued that there was a delay in preferring the appeal, and the court may not be able to condone the delay beyond four months. The appellate authority does not have discretion to condone the delay beyond one month after three months from the date of communication of the order. The petitioner was required to pay 20% balance disputed tax for consideration of its appeal by the 2nd appellate tribunal.

Constitution of 2nd Appellate Tribunal:
The petitioner sought to approach the 2nd appellate tribunal, which had not been constituted yet. As an interim measure, the court ordered the petitioner to deposit the entire tax demand within fifteen days. The rest of the demand was stayed during the pendency of the writ petition.

This matter will be listed after two weeks along with another related case.

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