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Orissa HC Stays Tax Demand On Company For Non-Formation Of Appellate Tribunal

Cuttack: In an important decision, the Orissa High Court has issued a stay payment of commercial tax by a private firm as GST Appellate Tribunal is not formed in the state.

As per the case, Nilamadhaba Enterprises had deposited 10% of the demanded tax amount and filed a dispute case. Later, the Joint Commissioner of State Tax, Jajpur Range, Jajpur district issued an order to the firm to pay 20% of the disputed amount.

Then the firm moved the high court challenging an appellate order against CT (commercial tax) & GST Officer, Cuttack. The petitioner claimed that he was not liable to pay the tax and penalty. He wanted to contest the claim of the 1st appellate authority though second appeal. But the 2nd appellate tribunal has not yet been constituted.

The advocate representing the GST officer contended in the High Court that the petitioner is liable to pay 20% disputed tax for consideration of its appeal by the 2nd appellate tribunal.

After hearing both parties, the high court ruled that the petitioner wanted to avail the remedy under the provisions of law by approaching 2nd appellate tribunal. Since the 2nd appellate tribunal has not been constituted, the petitioner is directed to deposit the entire tax demand but the rest of the demand will remain stayed during the pendency of the case.

OB Bureau

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