Magnum Estates Private Limited Vs Additional Commissioner (Orissa High Court)
Material Facts
The petitioner challenged the appellate order dated 29.09.2025 passed under Section 107 of the CGST/OGST Act affirming an adjudication order dated 15.12.2023 under Section 73 for FY 2017-18. During audit under Section 65, the petitioner was found to have availed input tax credit of ₹6,08,455 relating to exempt supplies. Part of the ITC was reversed through DRC-03 and the balance through GSTR-3B. The adjudicating authority demanded interest of ₹1,87,093 and imposed a penalty of ₹60,845.
Procedural History
The petitioner’s appeal under Section 107 was dismissed. Before the High Court, the petitioner contended that Form GST DRC-07 incorrectly reflected the interest demand of ₹1,87,093 under the “Tax” head instead of “Interest”. This error would require a 10% pre-deposit under Section 112(8) for filing an appeal before the GST Appellate Tribunal, although the dispute related only to interest and penalty.
Relevant Statutory Provisions
Articles 226 and 227 of the Constitution of India; Sections 50, 65, 73, 107, 112 and 161 of the CGST/OGST Act; Rule 101 of the GST Rules.
Parties’ Submissions
The petitioner argued that the appellate authority failed to correct the erroneous recording in Form GST DRC-07, resulting in prejudice while pursuing the statutory appeal. The Revenue objected to the writ petition on the ground of availability of an alternative remedy under Section 112.
