Case Law Details
Smt. Sanghamitra Nanda Vs Central Board of Indirect Taxes and Customs (Orissa High Court)
Introduction: In a significant development, the Orissa High Court has stayed a Goods and Services Tax (GST) demand in the absence of the constitution of the Second Appellate Tribunal (GSTAT). The petitioner, Smt. Sanghamitra Nanda, challenged the 1st appellate order rejecting her appeal, citing contravention of GST Act provisions. The absence of a functional GSTAT prompted the court to entertain the writ petition, emphasizing the petitioner’s deposit of 10% of the demanded tax amount.
Detailed Analysis: Smt. Sanghamitra Nanda contested the 1st appellate order dated 15.09.2023, arguing that she is not liable to pay the tax and penalty. The 2nd appellate tribunal, GSTAT, crucial for pursuing further appeals, had not been constituted at the time. The petitioner had already deposited 10% of the demanded tax amount before the 1st appellate authority.
On the contrary, the Additional Standing Counsel for the Department, Mr. Diganta Dash, raised concerns about the delay in filing the appeal and urged the court not to condone it beyond four months. He emphasized that the petitioner would be liable to pay the tax if choosing to avail the remedy through the 2nd appellate tribunal, requiring a 20% balance disputed tax payment for appeal consideration.
The court, acknowledging the absence of a functioning 2nd appellate tribunal, granted an interim stay on the demand, subject to the petitioner depositing the entire tax demand within fifteen days.
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