In W.P (C) No. 18145 of 2023 -ORI HC- Orissa High Court grants interim relief to Hotel Imperial Inn, Koraput, in GST appeal case; Stays remaining Tax demand
Justice B.R. Sarangi & Justice M.S. Raman [21-06-2023]

Read Order: Hotel Imperial Inn, Koraput v. Commissioner of State Tax, Cuttack and others

Chahat Varma

New Delhi, July 5, 2023: The Orissa High Court has granted interim relief to Hotel Imperial Inn, Koraput, (petitioner) in a GST appeal case. The Court acknowledged that the petitioner intends to seek a remedy under the provisions of the Odisha Goods and Services Tax Act, 2017 by approaching the 2nd appellate tribunal. However, since the tribunal has not yet been constituted, the Court ordered that the remaining tax demand will be stayed during the pendency of the writ petition.

The present writ petition was filed by the petitioner, challenging the 1st appellate order, issued by the Joint Commissioner of State Tax (Appeal). The petitioner argued that their appeal was not admitted by the authority, citing violation of sub-sections (1) & (4) of Section 107 of the Goods and Services Tax Act and additionally, the appeal filed under sub-Section (1) of Section 107 of the Odisha Goods and Services Tax Act, 2017 was rejected.

The petitioner argued that the they should not be held liable to pay the tax and penalty. They submitted that they had already deposited 10% of the demanded tax amount before the first appellate authority and in light of the absence of a second appellate forum, they contended that the High Court should entertain the writ petition. On the other hand, the standing counsel for Revenue argued against condoning the delay in preferring the appeal, while also suggesting that if the petitioner chooses to appeal before the 2nd appellate tribunal, they must pay 20% of the remaining disputed tax.

The division bench of Justice B.R. Sarangi and Justice M.S. Raman took note of the circumstances and decided to grant an interim relief. The Court ruled that the remaining tax demand would be stayed during the pendency of the writ petition. However, this stay was subject to the condition that the petitioner must deposit the entire tax demand amount within a four-week timeframe.