2024 (2) TMI 992 - HC - GST

Rejection of appeal filed under sub-Section (1) of Section 107 of the Odisha Goods and Services Tax Act, 2017 - petitioner contended that the petitioner is not liable to pay the tax and penalty and, as such, against the order passed by the 1st appellate authority though second appeal lies, the 2nd appellate tribunal has not yet been constituted - contravention to sub-sections (1) (4) of Section 107 of the GST Act - HELD THAT - Since the petitioner wants to avail the remedy under the provisions of law by approaching 2nd appellate tribunal, which has not yet been constituted, as an interim measure subject to the Petitioner depositing entire tax demand within a period of fifteen days from today, the rest of the demand shall remain stayed during the pendency of the writ petition. Application disposed off.

Summary

Issues involved: Challenge to 1st appellate order under GST Act, delay in preferring appeal, constitution of 2nd appellate tribunal.

The High Court entertained a writ petition challenging the 1st appellate order under the GST Act, where the petitioner contended non-liability to pay tax and penalty. The 2nd appellate tribunal had not been constituted, leading to the petition being entertained due to the absence of the said forum.

The petitioner filed a writ petition against the 1st appellate order dated 31.08.2023, contending that it was not liable to pay tax and penalty. The delay in constituting the 2nd appellate tribunal was highlighted as a reason for the petition being entertained.

The petitioner, through counsel, argued against the order passed by the 1st appellate authority, citing non-liability to pay tax and penalty. The absence of the 2nd appellate tribunal was emphasized as a reason for seeking relief through the writ petition.

The Standing Counsel contended that the delay in preferring the appeal might not be condoned beyond four months, especially when the appellate authority lacked discretion to condone the delay beyond a specified period. The petitioner was asserted to be liable to pay tax and was informed about the requirement to pay the balance disputed tax for consideration by the 2nd appellate tribunal.

As an interim measure, subject to the petitioner depositing the entire tax demand within fifteen days, the rest of the demand was stayed during the pendency of the writ petition. The matter was listed for further proceedings along with another related case.

The High Court addressed the challenge to the 1st appellate order under the GST Act, the delay in preferring the appeal, and the absence of the 2nd appellate tribunal, providing interim relief to the petitioner pending further proceedings.