Sai Mahaveer Suppliers and Constructions Vs Chief Commissioner of CT and GST (Orissa High Court)
Orissa High Court has ruled in favor of Sai Mahaveer Suppliers and Constructions, modifying the tax deposit requirement for staying an appellate order under the GST framework. The petitioner challenged the First Appellate Authority’s order dated September 23, 2024, seeking relief due to the absence of a functional GST Tribunal. Citing an earlier ruling in Maa Tarini Traders v. State of Odisha, the petitioner requested that the stay conditions be adjusted in line with recent notifications issued by both the Central and State revenue authorities.
Previously, the court had mandated that assessees deposit 10% of the disputed tax upon filing an appeal and an additional 20% for the impugned order to be stayed. However, a subsequent notification from the Central revenue authority, dated August 16, 2024, reduced this requirement to 10%. The State revenue department later issued a corresponding notification on October 29, 2024, aligning with the revised conditions. The petitioner sought relief based on these modifications, arguing that the reduced deposit requirement should apply to their case.
The High Court, after hearing submissions from both the petitioner’s counsel and representatives of the State and Central revenue authorities, accepted the petitioner’s request. The court ruled that the requirement for an additional 20% deposit should be reduced to 10%, ensuring consistency with the recent notifications. The revised deposit structure now allows taxpayers to secure a stay on an appellate order by depositing a total of 20% of the disputed tax—10% at the time of appeal and another 10% for the stay.
