Case Title: Durga Prasanna Sahu v. The Additional State Tax Officer, CT & GST Circle, Keonjhar and another
Court: High Court of Orissa, Cuttack
Petition No.: W.P.(C) No. 26577 of 2024
Judgment Date: 11 February 2025
Category: Appeal and Stay – Pre-deposit for Tribunal appeal
Relevant Sections: Section 112 of CGST Act, 2017 (Appeal to Appellate Tribunal); Rule 108 and Rule 109 of CGST Rules, 2017
Facts (Para 1–3):
The petitioner, Durga Prasanna Sahu, challenged an appellate order dated 11 July 2024 before the Orissa High Court. He intended to appeal before the yet-to-be-constituted GST Appellate Tribunal. Citing the precedent set in M/s Maa Tarini Traders v. State of Odisha (W.P.(C) No. 42015/2023, order dated 16 Feb 2024), the petitioner submitted that the High Court had earlier directed assessees to deposit 10 % of the disputed tax to file an appeal and 20 % of the remaining disputed amount to obtain a stay.
However, subsequent to the Central Government’s modification dated 16 August 2024, reducing the second-stage pre-deposit to 10 %, the State Government issued a corresponding notification on 29 October 2024. The petitioner thus sought parity of relief with the revised pre-deposit requirement.
Questions before the Court:
Whether the petitioner was entitled to the reduced 10 % pre-deposit of the remaining disputed tax amount to obtain a stay of the appellate order pending constitution of the Tribunal.
Court’s Observations (Para 5):
The Bench noted that the Central Government’s modification reducing the pre-deposit to 10 % of the remaining disputed tax was already adopted by the State authorities through notification dated 29 October 2024. The Court accepted the submission that such parity should extend to the petitioner, ensuring uniformity between State and Central GST provisions in the matter of pre-deposit for stay.
Judgment (Para 6):
The Court held that the writ petition is covered by the earlier order in Maa Tarini Traders but with the modified pre-deposit rate of 10 % of the remaining disputed tax for the stay of the impugned appellate order. Accordingly, the writ petition was disposed of, granting relief to the petitioner in line with the revised notification.
Table of Cases Referred
| Case Name | Citation / Petition No. | Issue | Verdict |
|---|---|---|---|
| M/s Maa Tarini Traders v. State of Odisha and others | W.P.(C) No. 42015 of 2023 (Order dated 16 Feb 2024, Orissa HC) | Stay on appellate order pending constitution of Tribunal | Stay allowed subject to deposit of 10% + 20% of disputed tax; later modified to 10% + 10% following Central notification |
Between Fine Lines:
This decision provides crucial relief to taxpayers awaiting Tribunal formation. It confirms that both Central and State GST authorities must maintain parity in pre-deposit requirements. Businesses can now secure a stay on first appellate orders by depositing only 10% of the remaining disputed tax, reducing financial burden and ensuring consistent treatment across jurisdictions.
Disclaimer – “The above summary is for academic purpose only; not formal legal opinion. Seek professional opinion before application. Author or publisher or website shall not be responsible for any usage in any form.”
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