Case Law Details
Laxman Barik Vs Joint Commissioner of State Tax (Orissa High Court)
Introduction: In a noteworthy legal proceeding, the Orissa High Court presided over the case of Laxman Barik Vs Joint Commissioner of State Tax. The litigation centred on GST demands and associated penalties where the court ordered a stay on the GST demand while also condoning the delay in the appeal. The court ruled in this manner primarily because the Second Appellate Tribunal has not yet been constituted.
Analysis: The core dispute in the case was related to the petitioner’s contention that he was not liable to pay the tax and penalty as prescribed by the 1st appellate order. However, a further appeal couldn’t be made due to the non-constitution of the 2nd appellate tribunal. The court, recognizing the void, entertained the writ petition despite arguments from the counsel for the revenue department against condoning the delay in appeal.
The petitioner, having already deposited 10% of the tax amount demanded, appealed to the court for consideration given the absence of a second appellate forum. The revenue department, on the other hand, insisted on the payment of an additional 20% of the disputed tax if the petitioner intended to proceed with an appeal before the yet-to-be-constituted 2nd appellate tribunal.
The court, despite these contentions, issued a notice to the opposite parties and stayed the remaining demand, subject to the full deposit of the tax demand by the petitioner.
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