Case Law Details
Deco Fame Vs Chief Comnr. of CT and GST (Orissa High Court)
The Orissa High Court addressed a writ petition filed by Deco Fame, challenging the order dated September 26, 2024, issued by the First Appellate Authority. The petitioner sought to appeal the order before the GST Appellate Tribunal (GSTAT), which has yet to be constituted. Citing an earlier decision in M/s. Maa Tarini Traders v. State of Odisha (February 16, 2024), the petitioner argued that taxpayers were required to deposit 10% of the disputed tax amount when filing an appeal and an additional 20% of the remaining disputed amount to stay the impugned order.
However, the petitioner highlighted a Central Revenue notification from August 16, 2024, which reduced the additional deposit requirement to 10%. This was later matched by a State Revenue notification issued on October 29, 2024. The High Court accepted the petitioner’s argument and directed compliance with the revised 10% deposit requirement for staying the appellate order. The court disposed of the writ petition, ensuring uniform application of the modified deposit rules for taxpayers seeking relief under GST appellate proceedings.
FULL TEXT OF THE JUDGMENT/ORDER OF ORISSA HIGH COURT
1. Mr. Lal, learned advocate appears on behalf of petitioner and submits, his client is aggrieved by order dated 26th September, 2024 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. Mishra, learned advocate, Standing Counsel appears on behalf of opposite party nos. 1 and 2 and Mr. Kedia, learned advocate, Junior Standing Counsel for Central 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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