Maa Tarini Traders Vs State of Odisha & Others (Orissa High Court)
Orissa High Court addressed multiple writ petitions challenging orders passed under the Central Goods and Services Tax Act, 2017 (CGST Act) and the Odisha Goods and Services Tax Act, 2017 (OGST Act). The primary issue was the lack of an Appellate Tribunal under Section 109 of these Acts, which deprived petitioners of their statutory right to appeal under Section 112. The petitioners contended that the absence of the Tribunal hindered their ability to seek relief and benefit from the statutory stay provisions under subsections (8) and (9) of Section 112. The court acknowledged that this situation led to procedural difficulties and referred to the Central Goods and Services Tax (Ninth Removal of Difficulties) Order, 2019, which clarified that the timeline for appeals would begin once the Tribunal was constituted. Additionally, the Central Board of Indirect Taxes and Customs (CBIC) had issued a circular in 2020 reinforcing the same clarification.
Considering these factors, the court directed that petitioners should receive the statutory benefit of stay upon verification of their deposit of 20% of the disputed tax amount, as required under Section 107(6). It ruled that tax recovery proceedings should be stayed until the Tribunal is constituted, and petitioners must file their appeals once it becomes functional. The court also noted that if a petitioner fails to file an appeal within the prescribed period after the Tribunal’s establishment, authorities may proceed with recovery actions. With these observations, the writ petitions were disposed of, ensuring that petitioners are not disadvantaged due to the government’s delay in constituting the Tribunal.
