M/S Mangalam Timber Prducts 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 is that the legislative amendment has altered the legal basis upon which the interest was demanded. Consequently, the impugned notice on demand and recovery dated February 14, 2020, was set aside. The matter was then remanded to the Joint Commissioner of State Tax and GST, Bhubaneswar-IV, for a fresh order to be passed in light of the said amendment. The operative direction is the setting aside of the notice and the remand for fresh adjudication.
Facts
M/s. Mangalam Timber Products Ltd. (Petitioner) filed a writ petition before the High Court of Orissa challenging a notice on demand and recovery dated February 14, 2020, passed by the Joint Commissioner of State Tax and GST, Bhubaneswar-IV (Opposite Party No. 2). The notice pertained to a levy of interest. The Opposite Parties, represented by the Commissioner of Odisha Goods and Service Tax and others, accepted notice. The core of the dispute revolved around the legality of the interest levied, which was subsequently affected by an amendment to the Central Goods and Services Tax Act, 2017.
Key Issues
1. Whether the levy of interest in terms of the impugned order dated February 14, 2020, is sustainable in law in light of the amendment to the Central Goods and Services Tax Act, 2017, by the Finance Act, 2021? Petitioner's Contention: The Petitioner implicitly argued that the interest levied was unsustainable due to subsequent legislative changes. The judgment notes that the amendment to the CGST Act, 2017, by the Finance Act, 2021, rendered the levy of interest in the impugned order unsustainable in law, suggesting this was the basis for the Petitioner's challenge. Revenue's Contention: The judgment does not record any specific arguments made by the Opposite Parties (Revenue). However, their acceptance of notice and the court's subsequent order imply an acknowledgment of the impact of the amendment.
Sections Cited
Central Goods and Services Tax Act, 2017, Finance Act, 2021
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORDER 22.12.2021 04. 1. Mr. Sunil Mishra, learned Additional Standing Counsel accepts notice on behalf of Opposite Party Nos.1 and 2 and Choudhury Satyajit Mishra, learned Senior Standing Counsel for Opposite Party Nos.3 and 4. 2. It is not in dispute that by virtue of amendment to the Central Goods and Services Tax Act, 2017 by the Finance Act, 2021, the levy of interest in terms of the impugned order 14th February, 2020 has been rendered unsustainable in law.
In that view of the matter, the impugned notice on demand and recovery dated 14th February, 2020 is hereby set aside and the matter is remanded to the Joint Commissioner of
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Orissa High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.