Case Law Details
Rajesh Swain Vs Joint Commissioner of State Tax (Orissa High Court)
Rajesh Swain challenged an order by the First Appellate Authority dated September 16, 2023, before the Orissa High Court. He intended to appeal the decision to the GST Appellate Tribunal (GSTAT), but since the Tribunal was not yet constituted, he sought relief in compliance with a previous court order in Maa Tarini Traders v. State of Odisha & Ors. (WP(C) No. 42015 of 2023). That order required taxpayers to deposit 10% of the disputed tax at the time of appeal and an additional 20% for a stay on the impugned order. However, a subsequent central notification on August 16, 2024, reduced the second deposit requirement to 10%, which the State government adopted on October 29, 2024.
Considering this, the Orissa High Court ruled that Swain could benefit from the revised deposit requirement, allowing him to deposit only 10% of the remaining disputed tax instead of 20% for a stay on the appellate order. The writ petition was disposed of accordingly.
FULL TEXT OF THE JUDGMENT/ORDER OF ORISSA HIGH COURT
1. Mr. Tibrewal, learned advocate appears on behalf of petitioner and submits, his client is aggrieved by order dated 16th September, 2023 made by the First Appellate Authority. He wants to appeal therefrom to the Tribunal but it has not yet been constituted. In the circumstances assessees and the department were complying with directions made on order dated 16th February, 2024 by the First Division Bench in a batch of writ petitions, lead case being WP(C) no.42015 of 2023 (M/s. Maa Tarini Traders v. State of Odisha and others).
2. The directions included requiring the assessee to deposit 10% of the disputed amount of tax on filing the appeal and further 20% of remaining disputed tax, for the impugned order to be stayed.
3. He submits, his client is up against State revenue. There was notification dated 16th August, 2024 made by Central revenue reducing latter deposit to 10%. Now, State revenue has correspondingly notified on 29th October, 2024. In the circumstances, the writ petition be disposed of as covered by order dated 16th February, 2024 (supra) with modification for deposit of 10% of remaining disputed tax for impugned order to remain stayed.
4. Mr. Das, learned advocate, Additional Standing Counsel appears on behalf of State revenue.
5. We accept submission made on behalf of petitioner regarding corresponding notification reducing requirement of the deposit to 10% of disputed tax for impugned first appellate order to remain The deposit be made accordingly.
6. The writ petition is accordingly disposed of.
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