M/S. National Trading Co vs The Commissioner Of Ct And .... Opposite ...
2025 Latest Caselaw 2557 Ori

Orissa High Court

M/S. National Trading Co vs The Commissioner Of Ct And .... Opposite ... on 13 January, 2025

Bench: Arindam Sinha, M.S. Sahoo

              IN THE HIGH COURT OF ORISSA AT CUTTACK
                                W.P.(C) No.1068 of 2025


            M/s. National Trading Co.,             ....              Petitioner
            Sambalpur

                                                    Represented By Adv. -
                                                Mr. R.P. Kar, Sr. Advocate
                                               Mr. S.A. Mohanty, Advocate
                                        -versus-

            The Commissioner of CT and             ....      Opposite Parties
            GST, Cuttack and others
                                                      Represented By Adv. -
                                            Mr. S. Mishra, Standing Counsel
                                CORAM:
               THE HON'BLE MR. JUSTICE ARINDAM SINHA
                                           AND
                   THE HON'BLE MR. JUSTICE M.S. SAHOO
                                          ORDER

13.01.2025 Order No.

01. 1. Mr. Kar, learned senior advocate appears on behalf of

petitioner and submits, his client had sufficient cause not to pay the

demand of tax. Though, ultimately the demand was upheld,

coordinate Bench on judgment dated 15th March, 2023, in a batch

of cases led by Shree Bharat Motors Ltd. v. Sales Tax Officer

available at 2023 SCC OnLine Ori 1045 had struck down

consequent demand of statutory interest. However, there was

direction in said judgment for the petitioners to pay compensatory

interest. Several petitioners, aggrieved thereby, moved the Supreme

Court on special leave petitions. There were several orders made for

issuance of notice coupled with direction that till next date of

hearing, no coercive step shall be taken against petitioners (before

the Supreme Court). He submits further, the demand of tax has

since been paid by his clients.

2. Under challenge is letter dated 7th August, 2024 issued by

revenue directing deposit of arrear entry tax interest due,

purportedly calculated on basis of compensatory interest directed by

said judgment dated 15th March, 2023. He submits, coordinate

Bench having had struck down statutory interest, there could not be

direction of compensatory interest. Hence, challenge to the letter

demanding the interest. He seeks interference, interim at this stage.

3. Mr. Mishra, learned advocate, Standing Counsel appears on

behalf of revenue and on query submits, revenue has also preferred

special leave petition against striking down of statutory interest by

coordinate Bench.

4. Revenue having had preferred special leave petition against

striking down of statutory interest, appears to have acted at

variance, by demanding compensatory interest. The writ petition is

required to be heard. Mr. Mishra submits, the Supreme Court has

not stayed any part of said judgment dated 15th March, 2023.

Counter will be filed by three weeks.

5. Counter be filed by 3rd February, 2025. Petitioners may file

rejoinder, to be accepted on adjourned date upon advance copy

served.

6. List on 10th February, 2025. Impugned letter will remain

stayed till next date of hearing.

(Arindam Sinha) Judge

(M.S. Sahoo) Judge Jyoti

Location: HIGH COURT OF ORISSA