2023 (7) TMI 1535 - HC - GST

Landmark Ruling: Challenging Penalty Demand Halts Coercive Action Under Procedural Scrutiny of Appellate Tribunal Mechanisms

HC of Orissa addressed a writ petition challenging a penalty demand. The court issued notice, connected related matters, and granted interim relief by ... Maintainability of petition - Second Appellate Tribunal has not yet been constituted - demand relating to penalty and fine - HELD THAT:- Perusal of order dated 7th June, 2023, it is found that challenge before the first appellate authority against the demand is confined to penalty & fine. Considering the submissions made by learned counsel for the Petitioner that the Petitioner would prefer appeal before the appellate Tribunal after it is constituted, as an interim measure, it is directed that no coercive action shall be taken against the Petitioner during the pendency of the writ petition so far as the impugned demand is concerned. The High Court of Orissa, presided over by Dr. Justice B.R. Sarangi and Mr. Justice M.S. Raman, addressed a writ petition due to the absence of a constituted Second Appellate Tribunal. The petitioner, represented by Mr. P.K. Harichandan, challenged a demand related to penalty and fine confirmed in the first appeal order. The court entertained the petition, issued notice, and instructed the filing of replies and rejoinders within specified timeframes. The court also connected this matter with W.P.(C) No.5501 of 2023. Importantly, as an interim measure, the court directed that 'no coercive action shall be taken against the Petitioner during the pendency of the writ petition' concerning the impugned demand.