M/S. Shivam Automobiles vs State Of Odisha .... Opposite Party
2025 Latest Caselaw 4979 Ori

Orissa High Court

M/S. Shivam Automobiles vs State Of Odisha .... Opposite Party on 13 March, 2025

Bench: Arindam Sinha, M.S. Sahoo

              IN THE HIGH COURT OF ORISSA AT CUTTACK
                                  WP(C) No.7340 of 2025

            M/s. Shivam Automobiles     ....                               Petitioner
                                                               Represented by Adv.-
                                                            Mr. Rajib Rath, Advocate
                                             -versus-
            State of Odisha             ....                           Opposite Party
                                                               Represented by Adv.-
                                                          Mr. Sunil Mishra, Advocate
                                                                  (Standing Counsel)

                                             CORAM:
                     THE HON'BLE MR. JUSTICE ARINDAM SINHA,
                           THE ACTING CHIEF JUSTICE
                                      AND
                       THE HON'BLE MR. JUSTICE M.S. SAHOO
                                              ORDER

13.03.2025 Order No.

01. 1. Mr. Rath, learned advocate appears on behalf of petitioner and

submits, impugned is demand for interest by reminder letter dated 19th

February, 2025 and order of bank attachment dated 6th February, 2025. He

submits, this interest is being claimed on delayed payment of entry tax, it

having been subject matter of adjudication before the Supreme Court,

cause for the delay. Ultimately, because the Supreme Court held that entry

tax was payable, there was, pursuant thereto, case decided by co-ordinate

Bench regarding interest. The levy of statutory interest was set aside but

compensatory interest directed. The judgment is subject matter of appeals

preferred by both dealers as well as revenue, before the Supreme Court. In

the circumstances, he seeks interference with the letter of demand for

aggregate to ₹79,22,126.22 on account of interest.

2. Mr. Mishra, learned advocate, Standing Counsel appears on behalf

of state revenue and submits, it is clear from particulars appended to

impugned reminder letter that the ₹55,09,595.76 is the claim for

compensatory interest. Petitioner can only claim interim protection against

that amount, since revenue has preferred appeal to the Supreme Court.

3. On query from Court regarding limited interference at this stage

Mr. Rath submits, let the writ petition be heard.

4. Counter be filed by 8th April, 2025. Petitioner may file rejoinder, to

be accepted on adjourned date upon advance copy served.

5. Demand for ₹55,09,595.76 out of aggregate ₹79,22,126.22 in

impugned demand letter will remain stayed till next date of hearing.

6. List on 30th April, 2025.

( Arindam Sinha ) Acting Chief Justice

( M.S. Sahoo )

Signed by: PRASANT KUMAR SAHOO Designation: PERSONAL ASSISTANT Reason: Authentication Location: Orissa High Court Date: 13-Mar-2025 Prasant 17:22:05