Orissa HC Allows GST Appeal Delay Until GST appellate Tribunal Forms

SKM and PP (J.V) Vs State of Odisha and others (Orissa High Court)

In the case SKM and PP (J.V) vs. State of Odisha, the Orissa High Court addressed a writ petition involving a dispute over a goods and services tax (GST) demand raised by the State of Odisha. The petitioner, represented by Mr. Mansing, sought to challenge an unfavorable appellate order regarding alleged short payments in GST. However, the petitioner faced a hurdle because the GST Appellate Tribunal, the body designated to review such cases, has yet to be constituted. With no available forum for appeal, the petitioner moved the High Court to seek relief. In response, the petitioner’s counsel cited a prior High Court ruling in Maa Tarini Traders, where similar relief was granted under these circumstances.

The State’s counsel did not contest the petitioner’s right to relief, acknowledging that the case was indeed aligned with the Maa Tarini Traders judgment. In that earlier case, the Orissa High Court had allowed affected parties to defer their appeals until the GST Appellate Tribunal is constituted. The court set conditions requiring a deposit and stipulated that if the tribunal is constituted within a specified time, the petitioner would need to file its appeal; otherwise, the state could proceed with the recovery process. Consequently, the court disposed of the writ petition in line with the Maa Tarini Traders decision, effectively granting the petitioner an extension to appeal the GST demand until the tribunal becomes operational.

FULL TEXT OF THE JUDGMENT/ORDER OF ORISSA HIGH COURT

1. Mr. Mansing, learned advocate appears on behalf of petitioner and submits, there was demand made by the State authority for short payment of goods and services tax. His client preferred appeal. It was rejected. Being aggrieved by the appellate order, his client wants to challenge the same but there is no Tribunal functioning. His client’s prayer is actually for adjudication of challenge to appellate order, by which it is aggrieved. Therefore, his client has moved this Court.

2. He submits, relief sought by his client is covered by order dated 16th February, 2024 made by the first Division Bench in a batch of writ petitions, lead case being W.P.(C) no.42015 of 2023 (M/s. Maa Tarini Traders).

3. Das, learned advocate, Additional Standing Counsel appears on behalf of the department. He does not dispute that the writ petition stands covered.

4. The first Division Bench directed a quantum of deposit with liberty to parties inasmuch as, petitioner could avail of its remedy upon constitution of the Tribunal and in event it does not do so within time provided upon reconstitution, the department would be free to proceed.

5. The writ petition is disposed of as covered by M/s. Maa Tarini Traders (supra).