High Court Grants Partial Relief in GST Appeal, Mandates 20% Tax Deposit and Interim Stay on Remaining Demand

HC allowed partial relief in GST appeal challenge. Petitioner was required to deposit 20% of disputed tax. Court granted interim stay on remaining tax demand due to non-constitution of 2nd appellate tribunal. Delay in appeal filing was noted, with standing counsel arguing against extension beyond prescribed timelines. Interim measure mandated tax deposit within 15 days.

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

Judgment Summary:

Challenge to 1st Appellate Order: The writ petition was filed to challenge the 1st appellate order dated 31.07.2023, which was passed by the Additional Commissioner of State Tax, CT & GST (Appeal), Sambalpur. The order rejected the appeal filed by the petitioner, citing contravention of 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, and since the 2nd appellate tribunal had not yet been constituted, the writ petition was entertained.

Delay in Preferring Appeal: The Standing Counsel argued that there was a delay in preferring the appeal, and requested the court not to condone the delay beyond four months. The appellate authority was not vested with discretion to condone the delay beyond one month after the lapse of three months from the date of communication of the impugned order. The petitioner was required to pay 20% balance disputed tax if they wanted to appeal before the 2nd appellate tribunal.

Constitution of 2nd Appellate Tribunal: As an interim measure, subject to the petitioner depositing the entire tax demand within fifteen days, the rest of the demand was stayed during the pendency of the writ petition since the 2nd appellate tribunal had not yet been constituted. The interim application was disposed of, and the matter was listed along with another case for further proceedings.

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