Orissa High Court Grants Interim Stay On ₹512 Crores GST Levy On Assignment Of Right To Use Natural Resources

The Chief Justice Harish Tandon and Justice Murahari Sri Raman were hearing the writ petition filed by ESL Steel whereby Advocates Bharat Raichandanit along with Advocates Sudipta Bhattacharjee, Onkar Sharma, Rishabh Prasad and Shrestha Khatri (from Khaitan & Co.) assailed the legality of the notice since the same was a consolidated one, bunching multiple financial years into single demand notice. They urged the Bench to consider that the notice had consolidated multiple financial years and was self‑contradictory. Thus, referring to its own decision in Vedanta Limited on bunching of notices, the Orissa High Court prima facie found grounds to grant an interim stay.

According to ESL Steel, statutory charges like royalty, stamp duty, registration fees, payments for Compensatory Afforestation Fund (CAF), etc. were compulsory exactions, not charged by the supplier and not 'consideration'.

It was also contended that payments made to CAF for acts allegedly 'tolerated' by the Government of conversion/ diversion of forest land was wholly incorrect since these payments were not towards any supply and no quid pro quo existed.

Case Detail: ESL Steel Limited

For Petitioner: Advocate Bharat Raichandani along with Advocates Sudipta Bhattacharjee, Onkar Sharma, Rishabh Prasad and Shrestha Khatri (from Khaitan & Co).