Case Title: Jagajyoti Mahanta v. Commissioner of CT & GST, Odisha & Others
Court: High Court of Orissa at Cuttack
Petition Number: W.P.(C) No. 32462 of 2024
Category: Stay on demand / Tribunal appeal pending constitution
Date of Judgment: 02 January 2025
Relevant Section: Section 112 of the CGST Act, 2017 (Appeal to Appellate Tribunal), Rule 108 of the CGST Rules, 2017
Facts (Para 1–3)
The petitioner, Jagajyoti Mahanta, challenged the order dated 20 November 2023 passed by the First Appellate Authority. He intended to file an appeal before the GST Appellate Tribunal, which, however, had not been constituted. Referring to earlier directions in Maa Tarini Traders v. State of Odisha (WP(C) No. 42015 of 2023, decided on 16 February 2024), the petitioner submitted that assessees were directed to deposit 10% of disputed tax for filing appeal and 20% of the remaining tax for stay of recovery.
He further submitted that the Central Government, by notification dated 16 August 2024, reduced the latter deposit requirement to 10%, which was subsequently adopted by the State Government on 29 October 2024. Hence, he prayed for extension of the same benefit in his case.
Questions Before the Court
Whether the petitioner could obtain a stay of the impugned first appellate order by depositing only 10% of the remaining disputed tax, in view of the revised Central and State notifications, despite the Tribunal not being constituted.
Court’s Observations (Para 4–5)
The Court noted that the petitioner’s submission was consistent with the notifications issued by both Central and State authorities, effectively reducing the required deposit for stay of recovery to 10% of the disputed tax. The State’s counsel did not dispute this factual position. The Bench accepted the petitioner’s contention that the reduced pre-deposit requirement applied equally in such interim arrangements till the Tribunal becomes functional.
Judgment (Para 5–6)
The Hon’ble Bench accepted the petitioner’s submission and directed that the impugned order shall remain stayed upon deposit of 10% of the remaining disputed tax. The writ petition was accordingly disposed of.
Summary of Cases Referred
| Case | Citation / No. | Court | Principle Laid Down |
|---|---|---|---|
| M/s. Maa Tarini Traders v. State of Odisha and Others | WP(C) No. 42015 of 2023, Orissa HC | High Court of Orissa | Till constitution of the Tribunal, appeal to be filed with 10% deposit and stay on further payment of 20% of remaining disputed tax. |
Between Fine Lines
This judgment ensures uniformity in pre-deposit requirements across the country by acknowledging the Central and State reduction of pre-deposit to 10% for stay of demand. It provides immediate relief to assessees who are unable to appeal before the yet-to-be-constituted GST Appellate Tribunal, aligning Odisha’s approach with national parity.
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.”
