Entire disputed amount required to be deposited before opting writ remedy

Last updated: 31 August 2023

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Quick Summary

The Orissa High Court has ruled that taxpayers must deposit the entire disputed tax demand within 15 days if they wish to seek a remedy through the writ court due to the non-constitution of the Goods and Services Tax Appellate Tribunal (GSTAT). In this case, the petitioner's appeal was not admitted because it contravened provisions of the CGST Act. Although the petitioner argued the tax had been paid, the court directed the deposit, stating that the rest of the demand would remain stayed subject to this deposit.

Court :
Orrisa High Court

Brief :
The Hon'ble Orrisa High Court in Krushna Mohan Dutta v. Commissioner of CT & GST, Odisha & Others [W.P (C) No. 25096 of 2023 dated August 09, 2023] held that, the assessee is required to deposit entire disputed demand within 15 days if the assessee intends to seek remedy through writ court in case on non-constitution of GSTAT.

Citation :
W.P (C) No. 25096 of 2023 dated August 09, 2023

The Hon'ble Orrisa High Court in Krushna Mohan Dutta v. Commissioner of CT & GST, Odisha & Others [W.P (C) No. 25096 of 2023 dated August 09, 2023] held that, the assessee is required to deposit entire disputed demand within 15 days if the assessee intends to seek remedy through writ court in case on non-constitution of GSTAT.

Facts

Krushna Mohan Dutta ("the Petitioner") preferred and appeal beforetheJoint Commissioner of State Tax, CT & GST ("the first Appellate Authority") who vide Order dated June 02, 2023 ("the Impugned Order") has not admitted the appeal preferred by the Petitioner, as the same is in contravention to 107(1) & (4) of the Central Goods and Services Tax Act, 2017 ("the CGST Act"). Due to non-constitution of the Appellate Tribunal the Petitioner filed the present writ before the Hon’ble Orissa High Court.

Issue

Whether the Petitioner is liable to deposit the tax demand if the tax was entirely paid and the Appellate Tribunal is not yet constituted?

Held

The Hon’ble Orrisa High Court in W.P (C) No. 25096 of 2023 held as under:

Observed that, the Petitioner wanted to avail the remedy under the provisions of law by approaching the Appellate Tribunal which is not yet constituted.
Directed, the Petitioner to deposit the entire tax demand within the period of fifteen days.
Opined that, subject to the Petitioner depositing entire tax demand, the rest of the demand shall remain stayed.
Listed the matter along with W.P.(C) No.6684 of 2023 for the next date.

FAQ :

Taxpayers must deposit the entire disputed tax demand within 15 days.

The Hon'ble Orissa High Court.

Krushna Mohan Dutta v. Commissioner of CT & GST, Odisha & Others, W.P (C) No. 25096 of 2023.

The appeal was not admitted as it was in contravention of sections 107(1) & (4) of the Central Goods and Services Tax Act, 2017.

Subject to the deposit of the entire tax demand, the rest of the demand shall remain stayed.

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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