Non-functional GST tribunal: statutory appeal and recovery stay may be preserved after pre-deposit until the forum becomes operational.

Under the Chhattisgarh GST framework, where the second appellate tribunal had been notified but was not yet functional, and the taxpayers had already made the required pre-deposit, the appellate remedy and the accompanying stay on recovery were preserved. The matter notes that the petitioners may file the statutory appeal once the tribunal becomes operational, with recovery remaining stayed until disposal of that appeal. If the appeal is not filed within the applicable limitation period, the State may proceed with recovery.

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Issues: Whether, in the absence of a functional Goods and Services Tax Appellate Tribunal, the petitioners could be permitted to pursue the statutory appeal later while the statutory stay on recovery continued.

Analysis: The petitions arose from orders under the Chhattisgarh Goods and Services Tax Act, 2017, where the second appellate forum had been notified but was not yet functional. The petitioners had already deposited the amount required for filing the appeal under the statutory pre-deposit scheme. The relief granted was shaped by the statutory framework governing first appeal, constitution of the appellate tribunal, the requirement of pre-deposit, and the stay that follows upon such deposit. In view of the non-constitution of the tribunal, the petitions were disposed of with a direction that an appeal be filed once the tribunal becomes functional, and that the statutory stay on recovery remain in force until disposal of such appeal.

Conclusion: The petitioners were granted liberty to file the statutory appeal when the tribunal becomes functional, and recovery remained stayed till decision of that appeal; if the appeal is not filed within limitation, the State may proceed with recovery.

Final Conclusion: The writ petitions were disposed of by preserving the petitioners' appellate remedy and interim protection under the GST framework, while leaving recovery open if the appeal is not pursued in time.

Ratio Decidendi: Where the statutory appellate tribunal is not functional despite pre-deposit having been made, the affected party should not be denied the statutory benefit of appeal and stay, and the remedy may be preserved until the tribunal becomes operational.

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