M/S Mangalam Timber Products LTD. vs. The Commissioner Of Odisha Goods And Service Tax

Held

The Court held that the levy of interest in terms of the impugned order dated February 14, 2020, has been rendered unsustainable in law due to the amendment to the Central Goods and Services Tax Act, 2017, by the Finance Act, 2021. The reasoning was based on the undisputed fact that the amendment made the levy unsustainable. Consequently, the impugned notice on demand and recovery dated February 14, 2020, was set aside. The matter was remanded to the Joint Commissioner of State Tax and GST, Bhubaneswar-IV Circle, for a fresh order in light of the aforementioned amendment. No specific amount in dispute was mentioned.

Facts

The petitioner, M/s. Mangalam Timber Products Ltd., filed a writ petition before the High Court of Orissa at Cuttack challenging a notice on demand and recovery dated February 14, 2020, issued by the Joint Commissioner of State Tax and GST, Bhubaneswar-IV Circle. The notice pertained to the levy of interest. The Opposite Parties were the Commissioner of Odisha Goods and Service Tax and Others. The court noted that an amendment to the Central Goods and Services Tax Act, 2017, by the Finance Act, 2021, rendered the levy of interest in the impugned order unsustainable in law.

Key Issues

1. Whether the levy of interest in terms of the impugned notice on demand and recovery dated February 14, 2020, is sustainable in law, considering the amendment to the Central Goods and Services Tax Act, 2017, by the Finance Act, 2021? The Petitioner contended that the amendment to the CGST Act, 2017, by the Finance Act, 2021, has rendered the levy of interest unsustainable. The Revenue did not dispute this contention, as indicated by the court's observation that it was not in dispute. No specific arguments were recorded for the Revenue beyond their acceptance of notice.