Case Law Details
Chirag Industries Bhubaneswar Vs Additional Commissioner of State Tax (High Court Orissa)
In a noteworthy ruling, the Orissa High Court has put a temporary halt to coercive actions against Chirag Industries of Bhubaneswar during the pendency of their writ petition. The case pertains to the demand of GST arrears, with the contention primarily revolving around penalty and fine.
The writ petition came into consideration primarily because the Second Appellate Tribunal, the usual forum for such issues, is not yet constituted. Chirag Industries’ challenge before the first appellate authority was confined to the demand for penalty and fine, and the learned counsel for the petitioner, Mr. P.K. Harichandan, confirmed this position.
In response to these proceedings and considering the petitioner’s intention to appeal before the appellate Tribunal when it is constituted, the court decided on an interim measure. It directed that no coercive action should be taken against the petitioner as far as the disputed demand is concerned, during the pendency of the writ petition. This decision reflects the court’s effort to balance the need for immediate tax recovery with the rights of the petitioner.
Conclusion: This interim directive by the Orissa High Court underscores the important principle that no coercive actions should be taken during the pendency of legal proceedings, maintaining a fair and equitable legal process. The court’s decision to hold off on any coercive actions until the writ petition is resolved reaffirms the judicial commitment to preserving the rights of all parties in a dispute. However, as the case is pending, the final resolution will be determined once the writ petition is settled and the Second Appellate Tribunal is constituted.
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