Landmark GST Appeal Decision: Judicial Intervention Provides Pathway for Tax Dispute Resolution Under Section 112

The HC addressed appealability issues under GST legislation, recognizing statutory limitations due to non-constitution of the Appellate Tribunal. The court disposed of the writ petition by granting a stay on disputed tax amounts, directing the petitioner to file an appeal under Section 112 once the Tribunal is established, while preserving the respondent's right to proceed legally if no appeal is filed.

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Issues involved:
The issues involved in this case include the appealability of an order passed by the Authority under the Central Goods and Services Tax Act, 2017 (CGST Act)/Odisha Goods and Services Tax Act, 2017 (OGST Act) under Section 112, deprivation of statutory remedy of Appeal due to non-constitution of the Appellate Tribunal, and the applicability of the Central Goods and Services Tax (Ninth Removal of Difficulties) Order, 2019 in such cases.

Appealability of Order:
The order impugned in the writ petition, passed by the Authority under the CGST/OGST Act, is acknowledged as appealable under Section 112 of the Acts. However, due to the non-constitution of the Appellate Tribunal as required under section 109, the petitioner is deprived of its statutory remedy of Appeal and the corresponding benefits under subsections 8 & 9 of section 112.

Central Goods and Services Tax (Ninth Removal of Difficulties) Order, 2019:
In response to the absence of the Appellate Tribunal, the Government of India issued the Central Goods and Services Tax (Ninth Removal of Difficulties) Order, 2019. This order clarifies the calculation of time periods for filing appeals, considering the date of communication of the order and the date on which the President or State President of the Appellate Tribunal enters office.

Clarification and Circular:
A clarification was issued by the Central Board of Indirect Taxes and Customs, GST Policy Wing through Circular No. 132/2/2020-GST. This circular addresses the appeal process in cases where the Appellate Tribunal has not been constituted, providing guidance on the time limit for making applications to the tribunal and advising the disposal of pending appeals without waiting for the tribunal's constitution.

Judgment and Disposal:
Considering the Central Goods and Services Tax (Ninth Removal of Difficulties) Order, 2019 and the circular issued by the GST Policy Wing, the Court decided to dispose of the writ petition by granting the petitioner the benefit of stay on the remaining tax amount in dispute. The petitioner is required to file an appeal under Section 112 of the CGST/OGST Act once the Tribunal is constituted and functional, failing which the respondent-Authorities can proceed further in accordance with the law.

Certified Copy:
An urgent certified copy of the order was directed to be issued in accordance with the rules.

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