Case Law Details
Nilamadhaba Enterprises Vs CT & GST Officer (Orissa High Court)
The case of Nilamadhaba Enterprises Vs CT & GST Officer saw the Orissa High Court take an unusual step due to the absence of a functional GST Appellate Tribunal. Faced with an appeal challenging an appellate order issued by the Joint Commissioner of State Tax, the High Court decided to put a stay on the tax demand, granting interim relief to the petitioner.
Analysis: This case revolves around an unmet tax and penalty demand made on the petitioner, Nilamadhaba Enterprises. The first appellate authority rejected the appeal preferred by the petitioner on the grounds that it contravened subsections (1) & (4) of Section 107 of the GST Act. The absence of a constituted second appellate tribunal complicated matters, as the petitioner could not appeal against the first appellate order.
The court weighed the arguments of both sides, with the petitioner arguing they were not liable to pay the demanded tax and penalty. The Department, represented by learned Standing Counsel Sunil Mishra, insisted that the delay in filing the appeal could not be condoned and the petitioner should pay the remaining disputed tax if they wish to appeal before the second appellate tribunal.
Conclusion: In this unusual case, the Orissa High Court decided to grant interim relief to the petitioner due to the absence of the second appellate tribunal. The High Court’s decision to stay the tax demand underscores the significance of having a fully constituted and operational legal apparatus to ensure that all parties can exercise their right to appeal effectively. The case of Nilamadhaba Enterprises Vs CT & GST Officer is a notable example of how the court can employ its discretion to provide interim relief in exceptional circumstances.
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