Legal Remedy Preserved: GST Appeal Rights Upheld Despite Tribunal Delay, Ensuring Statutory Protection for Taxpayers

The SC addressed appealability issues under GST Acts due to non-constitution of Appellate Tribunal. The court granted statutory appeal benefits, directing the petitioner to file appeal once Tribunal is constituted. The judgment clarified time limits for appeals through Removal of Difficulties Order and provided procedural guidance, ensuring the petitioner's legal remedies are preserved while maintaining regulatory compliance.

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Issues involved:
The issues involved in this case pertain to the appealability of an order passed by the Authority under the Central Goods and Services Tax Act, 2017 (CGST Act) and Odisha Goods and Services Tax Act, 2017 (OGST Act) under Section 112 of the Acts, the non-constitution of the Appellate Tribunal as required under section 109 of the Acts, and the statutory remedy of Appeal available to the petitioner.

Summary:

Issue 1: Appealability of the Order
The order impugned in the writ petition is appealable under Section 112 of the CGST/OGST Act, 2017. Due to the non-constitution of the Appellate Tribunal as required by law, the petitioner is deprived of its statutory remedy of Appeal and the corresponding benefits under sub-sections 8 & 9 of section 112 of the Acts.

Issue 2: Removal of Difficulties Order
The Government of India, based on the recommendation of the GST Council, issued the Central Goods and Services Tax (Ninth Removal of Difficulties) Order, 2019 to address the absence of the Appellate Tribunal. This Order clarifies the calculation of time periods for filing appeals in cases where the Tribunal is not constituted.

Issue 3: Circular for Appeal Procedure
A circular issued by the Central Board of Indirect Taxes and Customs provided further clarification on the appeal process in light of the non-constitution of the Appellate Tribunal. The circular specified that the time limit for filing an appeal would be counted from the date the President or State President of the Tribunal enters office.

Judgment:
Considering the Removal of Difficulties Order and the circular, the Court disposed of the writ petition with the following directions:
1. The petitioner is granted the statutory benefit of stay on the deposit of a certain amount, ensuring they are not deprived of the benefit due to the non-constitution of the Tribunal.
2. The petitioner must file an appeal under Section 112 of the Acts once the Tribunal is constituted, observing all statutory requirements.
3. If the petitioner chooses not to file an appeal within the specified period after the Tribunal's constitution, the authorities are free to proceed further in accordance with the law.

With the above directions and liberty granted, the writ petition was disposed of, and an urgent certified copy of the order was to be issued as per rules.

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