Authority: Orissa High Court, Cuttack

Order Date: 15 July 2026

Case Overview

  • Petitioner: Magnum Estates Private Limited, represented by Executive Director C.V. Padmarajan, challenged GST orders.
  • Opposite parties: Additional Commissioner, GST (Appeals); Superintendent CGST & Central Excise, Balasore‑I Range; Superintendent Jajpur Audit Circle.
  • Issue: Input tax credit of Rs 6,08,455 claimed for exempted goods in FY 2017‑18; reversal of Rs 1,77,136 via DRC‑03 on 15 Jan 2020 and remaining Rs 4,31,319 via GSTR‑3B for Oct 2019.
  • Adjudicating Authority (order dated 15 Dec 2023) levied interest of Rs 1,87,093 and penalty of Rs 60,845 under Section 73 of the GST Act.
  • Appeal under Section 107 dismissed by Additional Commissioner on 29 Sep 2025.
  • Petition sought admission of writ, quash of the appellate order, refund of pre‑deposit Rs 18,710, and mandamus to direct quashing.
  • Arguments: Petition argued penalty improper, interest classification error in Form DRC‑07, amendment Section 128A waiving interest/penalty, and that forcing a deposit under Section 112 would be unjust.
  • Court observed that factual disputes must be decided by tax authorities, noted the mis‑classification of interest as tax, and referenced a rectification order dated 28 Jan 2026 re‑classifying the amount correctly.

Final Outcome

  • The High Court set aside the Additional Commissioner’s order dated 29‑09‑2025.
  • Matter remitted to the GST Appellate Authority for fresh merit determination without influence of the earlier order.
  • The writ petition and any pending interlocutory applications are disposed of.

Topics: GST, Tax Litigation