Orissa HC stays tax demand of firm due to non-constitution of GST Appellate Tribunal
The Orissa High Court issued a stay of payment of commercial tax by a private firm in an important decision because the state does not have a GST Appellate Tribunal.
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Cuttack: The Orissa High Court issued a stay of payment of commercial tax by a private firm in an important decision because the state does not have a GST Appellate Tribunal.
According to the case, Nilamadhaba Enterprises deposited 10% of the tax amount demanded and filed a dispute case. The firm was later ordered to pay 20% of the disputed amount by the Joint Commissioner of State Tax, Jajpur Range, Jajpur district.
The firm then filed an appeal with the Supreme Court, challenging an appellate order against CT (commercial tax) and GST Officer, Cuttack. The petitioner claimed that he was exempt from paying the tax and penalty.
He wished to challenge the claim of the first appellate authority in a second appeal. However, the second appellate tribunal has yet to be formed.
The advocate for the GST officer argued in the High Court that the petitioner must pay 20% of the disputed tax in order for the 2nd appellate tribunal to consider its appeal.
After hearing both parties, the high court decided that the petitioner wanted to seek a remedy under the law by contacting the 2nd appellate tribunal. Because the 2nd appellate tribunal has not been formed, the petitioner is directed to deposit the entire tax demand, but the remainder of the demand is stayed while the case is pending.
