Case Title: M/s. Harishankar Dibyaranjan v. Chief Commissioner of CT & GST, Cuttack & Others
Court: High Court of Orissa, Cuttack
Petition No.: W.P.(C) No. 2690 of 2025
Category of Dispute: Stay on Demand Pending Tribunal Constitution
Date of Judgment: 04.02.2025
Relevant Sections: Section 112(8) of CGST Act, 2017 (Appeal to Appellate Tribunal), read with Rule 108 of CGST Rules, 2017
Facts (Paras 1–3)
The petitioner, M/s Harishankar Dibyaranjan, challenged the order dated 20 December 2023 passed by the First Appellate Authority. The assessee intended to file an appeal before the Appellate Tribunal; however, since the Tribunal was yet to be constituted, it sought protection from recovery. Reference was made to the earlier Division Bench order dated 16 February 2024 in M/s Maa Tarini Traders v. State of Odisha & Ors. (W.P.(C) No. 42015 of 2023), where interim relief was granted subject to deposit of 10% of the disputed tax at the appeal stage and an additional 20% for stay of recovery.
Questions for Determination
Whether, in view of the subsequent Central and State notifications reducing the additional pre-deposit to 10%, the petitioner could avail stay of recovery upon depositing 10% instead of 20% of the remaining disputed tax pending constitution of the GST Appellate Tribunal.
Observations (Paras 2–5)
The Court took note of the petitioner’s reliance on the Central notification dated 16 August 2024 reducing the pre-deposit from 20% to 10%, and the corresponding Odisha State notification dated 29 October 2024 implementing the same. The Bench observed that such reduction was intended to harmonize both Central and State GST regimes, and thus the petitioner’s case fell squarely within the updated policy framework.
Judgment (Paras 5–6)
Accepting the petitioner’s submission, the High Court modified its earlier directions in Maa Tarini Traders to permit stay of the impugned appellate order upon deposit of 10% of the remaining disputed tax, instead of 20%. The writ petition was accordingly disposed of, affirming parity between Central and State GST pre-deposit requirements.
Table – Referenced Case and Outcome
| Case Name | Citation / Petition No. | Key Issue | Verdict |
|---|---|---|---|
| M/s Maa Tarini Traders v. State of Odisha & Ors. | W.P.(C) No. 42015 of 2023 (Orissa HC) | Stay of demand pending constitution of Tribunal; pre-deposit quantum | Court ordered 10% + 20% deposit for stay; now modified to 10% + 10% following new notifications |
Between Fine Lines
This judgment ensures uniformity and relief for taxpayers across States by aligning Odisha’s pre-deposit requirement with the reduced 10% threshold under Central GST. Businesses awaiting Tribunal formation can now obtain stay of recovery by depositing a total 20% (10% + 10%) of disputed tax, easing cash-flow pressures and supporting procedural fairness.
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