Tax Dispute Resolved: Conditional Relief Granted with 10% Deposit and Four-Week Compliance Window for Full Tax Demand

HC allowed the writ petition with conditional relief. Petitioner must deposit entire tax demand within four weeks. First appellate order challenged due to absence of 2nd appellate tribunal. Interim stay granted on remaining tax demand, with matter listed for further proceedings, subject to 10% tax already deposited by petitioner.

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Issues: Challenge to 1st appellate order under GST Act, Delay in constitution of 2nd Appellate Tribunal.

In the present case, the petitioner filed a writ petition challenging the 1st appellate order dated 08.08.2023 passed by the Joint Commissioner of State Tax (Appeal), Territorial Range, Cuttack-II. The petitioner contended that they are not liable to pay the tax and penalty. However, the 2nd appellate tribunal has not yet been constituted, leading to the petitioner seeking relief through the writ petition due to the absence of a second appellate forum. The petitioner had already deposited 10% of the demanded tax amount before the first appellate authority. On the other hand, the Standing Counsel for Revenue argued that there is a delay in preferring the appeal and the court may not be able to condone the delay beyond four months. It was further contended that the petitioner is liable to pay the tax, and if they wish to appeal before the 2nd appellate tribunal, they must pay 20% of the balance disputed tax for consideration of the appeal.

As an interim measure, subject to the Petitioner depositing the entire tax demand within four weeks from the date of the order, the rest of the demand shall remain stayed during the pendency of the writ petition. The court disposed of the I.A. and listed the matter along with another case on a specified date for further proceedings.

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