M/S.Gopal Jewellery,Baripada vs. Commissioner Of CT And GST,Odisha

Facts

The Petitioners, M/s. Gopal Jewellery & Another, challenged an order dated January 4, 2022, passed by the Commissioner of CT & GST, Odisha. This order rejected their petition for stay pending disposal of a Second Appeal before the Tribunal. The Petitioners had already deposited 20% of the demanded tax amount of Rs. 31,76,646/- at the first appellate stage. The impugned order was passed ex parte, virtually without the Petitioners' participation.

Held

The Court held that the impugned order of the Commissioner of CT & GST, Odisha, rejecting the Petitioners' stay petition was passed virtually without the participation of the Petitioners and was ex parte. Considering this and the fact that the Petitioners had already deposited 20% of the demanded tax amount, the Court directed that no coercive steps shall be taken against the Petitioners during the pendency of the Second Appeal before the Tribunal. This relief is conditional upon the Petitioners depositing a further amount constituting 10% of the balance tax amount within four weeks from the date of the order. The Court stated that this order would be in substitution of the impugned order of the Commissioner. The Court did not expressly leave any issue undecided.

Key Issues

1. Whether the Commissioner of CT & GST, Odisha, was justified in rejecting the Petitioners' stay petition pending Second Appeal, considering the partial deposit made by the Petitioners. Petitioner's Argument: The Petitioners contended that they had already deposited 20% of the demanded tax amount at the first appellate stage. They argued that the Commissioner's order rejecting their stay petition was passed ex parte and without their participation, implying a procedural irregularity and a lack of consideration for their financial commitment. Revenue's Argument: The judgment does not record any specific arguments made by the Opposite Parties (Commissioner of CT & GST, Odisha, and others).