Case Summary: M/s. Shree Laxmi Bhandar v. Chief Commissioner, CT and GST, Odisha & Anr.
Court: High Court of Orissa at Cuttack
Petition No.: W.P.(C) No. 4501 of 2025
Category of Dispute: Pre-deposit for Tribunal appeal and stay of demand
Date of Judgment: 13 February 2025
Relevant Sections: Section 112(8) and (9) of the CGST Act, 2017 read with Rule 108 of the CGST Rules, 2017
Facts (Para 1–2)
The petitioner, M/s. Shree Laxmi Bhandar, challenged the order of the First Appellate Authority dated 23 December 2024. The firm intended to file an appeal before the yet-to-be constituted GST Appellate Tribunal. Citing the precedent set in M/s. Maa Tarini Traders v. State of Odisha & Ors. (WP(C) No. 42015 of 2023), the petitioner submitted that the interim arrangement mandated a 10% pre-deposit of the disputed tax for filing an appeal and an additional 20% for obtaining stay of recovery.
Questions for Consideration
Whether the petitioner was required to deposit an additional 20% of the remaining disputed tax amount to secure a stay on the recovery, or whether the deposit amount should stand reduced to 10% following the Central and State notifications harmonizing pre-deposit rates.
Observations (Para 2–5)
The petitioner drew attention to the Central Government notification dated 16 August 2024, which reduced the additional deposit for stay of recovery from 20% to 10% of the remaining disputed tax. Subsequently, the State of Odisha issued a corresponding notification dated 29 October 2024, adopting the same reduction.
The Court noted that in the absence of the Tribunal, both taxpayers and the department had been following the High Court’s earlier directions from Maa Tarini Traders for provisional compliance. Given the issuance of the new notifications aligning both Central and State GST procedures, the Court accepted the petitioner’s contention that only a 10% deposit of the remaining disputed amount would suffice for stay of the impugned order.
Judgment (Para 5–6)
The Division Bench of Justice Arindam Sinha (Acting Chief Justice) and Justice M.S. Sahoo held that the petitioner’s submission was valid and directed that the requisite pre-deposit for obtaining stay shall be limited to 10% of the remaining disputed tax. The writ petition was accordingly disposed of in line with the revised deposit structure.
Summary of Cases Referred
| Case | Citation / Petition No. | Verdict |
|---|---|---|
| M/s. Maa Tarini Traders v. State of Odisha & Ors. | WP(C) No. 42015 of 2023 | Court directed that until the constitution of the Tribunal, appeals could be entertained upon 10% pre-deposit and 20% further deposit for stay; forms the basis for subsequent modifications. |
Between Fine Lines
This judgment ensures parity between the Central and State GST pre-deposit requirements. Taxpayers in Odisha appealing before the unconstituted GST Tribunal now benefit from a reduced 10% additional deposit for obtaining stay, easing liquidity constraints and ensuring consistency across jurisdictions.
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