Jagajyoti Mahanta Vs Commissioner of CT and GST (Orissa High Court)
In the case of Jagajyoti Mahanta Vs Commissioner of CT and GST, the Orissa High Court addressed a matter concerning the pre-deposit requirement for staying a demand in a tax appeal. The petitioner, Jagajyoti Mahanta, challenged the order passed by the First Appellate Authority on November 20, 2023. The petitioner sought to file an appeal before the Tribunal, but due to the non-constitution of the Tribunal, the case was brought before the High Court for resolution. The petition was filed in line with earlier directions issued by the Court in February 2024 concerning similar tax disputes.
In the prior judgment, the Court had directed that assessees must deposit 10% of the disputed tax amount when filing an appeal, with an additional 20% deposit required for the stay of the impugned order. However, a recent notification issued by the Central Government on August 16, 2024, reduced the pre-deposit requirement to 10% for the stay of demand. Following this, the State Revenue Department issued a corresponding notification on October 29, 2024, aligning with the revised policy.
The petitioner sought the modification of the pre-deposit requirement in line with these updated notifications. It was argued that the deposit of 10% of the disputed tax amount, as per the new government guidelines, should suffice for the stay of the impugned order. The Court considered the petitioner’s submission and the latest notifications issued by both the Central and State governments.
