2023 (7) TMI 1549 - HC - GST

GST Appeal Procedural Challenges: Interim Stay Granted with Conditional Tax Deposit Requirement Under Section 35

Ajaya Kumar Nayak Versus Joint Commissioner of State Tax (Appeal), Jagatsinghpur Circle & Others

The HC addressed a tax dispute involving GST appeal procedures. The court issued a notice to respondents and granted an interim stay on tax demand, ... Maintainability of petition - availability of alternative remedy - non-constitution of Second Appellate Tribunal - HELD THAT:- Since the petitioner wants to avail the remedy under the provisions of law by approaching 2nd appellate tribunal, which has not yet been constituted, as an interim measure subject to the Petitioner depositing entire tax demand within a period of fifteen days from today, the rest of the demand shall remain stayed during the pendency of the writ petition. Application disposed off. The Orissa High Court, comprising Dr. Justice B.R. Sarangi and Mr. Justice Murahari Sri Raman, addressed a writ petition due to the absence of a Second Appellate Tribunal. The petitioner challenged the 1st appellate order dated 24.03.2023 by the Joint Commissioner of State Tax, which rejected the appeal under Section 107 of the Odisha Goods and Services Tax Act, 2017. The petitioner's counsel, Mr. U.C. Behura, argued that the petitioner is not liable for the tax and penalty and has already deposited 10% of the demanded tax. Due to the lack of a second appellate forum, they sought the court's intervention.Mr. Sunil Mishra, representing the CT & GST Organization, contended that the delay in filing the appeal could not be condoned beyond four months, as the appellate authority lacks discretion to extend the delay beyond one month post the three-month period from the order's communication. Furthermore, Mr. Mishra noted that the petitioner is required to pay an additional 20% of the disputed tax to appeal before the Second Appellate Tribunal once constituted.The court issued a notice to the opposite parties, with Mr. Mishra accepting it on their behalf. The court instructed the petitioner to serve copies of the writ petition to Mr. Mishra within three working days, with replies due within two weeks. As an interim measure, the court stayed the rest of the tax demand, provided the petitioner deposits the entire tax demand within fifteen days. The matter is scheduled to be listed alongside W.P.(C) No.6684 of 2023 on the next fixed date.