Statutory Benefits Granted Amid Tribunal Absence; Petitioner Gets Conditional Stay on 20% Tax Deposit Obligation.

The HC granted statutory benefits to the petitioner due to the non-constitution of the Appellate Tribunal under the CGST/OGST Acts. The petitioner was allowed a stay on depositing 20% of the disputed tax, subject to conditions. The petitioner must file an appeal under Section 112 once the Tribunal is constituted. Failure to do so within the specified period will permit respondent authorities to proceed legally. The writ petition was disposed of with these directives.

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Issues:
1. Appealability of the 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) due to non-constitution of the Appellate Tribunal.
2. Interpretation and application of the Central Goods and Services Tax (Ninth Removal of Difficulties) Order, 2019 and Circular No.132/2/2020-GST.
3. Granting of statutory benefits to the petitioner in light of the non-constitution of the Appellate Tribunal.

Analysis:
1. The High Court addressed the issue of appealability of an order passed under the CGST Act/OGST Act due to the non-constitution of the Appellate Tribunal. It was acknowledged that the petitioner was deprived of the statutory remedy of appeal and the corresponding benefits of subsections 8 and 9 of section 112 of the Acts because of the absence of the Tribunal as required under section 109. The Court noted the issuance of the Central Goods and Services Tax (Ninth Removal of Difficulties) Order, 2019 by the Government of India to address this issue.

2. The Court considered the interpretation and application of the Removal of Difficulties Order and Circular No.132/2/2020-GST issued by the Central Board of Indirect Taxes and Customs. These documents clarified that the appeal to the Tribunal could be made within a specified period from the date of communication of the order or from the date on which the President or State President of the Appellate Tribunal enters office, whichever is later. The Court emphasized the importance of timely filing of appeals once the Tribunal is constituted for proper consideration.

3. In light of the above, the High Court granted statutory benefits to the petitioner due to the non-constitution of the Appellate Tribunal. The Court directed that the petitioner must be extended the benefit of stay on deposit of a sum equal to 20 percent of the remaining amount of tax in dispute, subject to certain conditions. The Court also outlined that the petitioner would be required to file an appeal under Section 112 of the Acts once the Tribunal is constituted and functional. Failure to file an appeal within the specified period upon the Tribunal's constitution would allow the respondent authorities to proceed further in the matter in accordance with the law. The Court disposed of the writ petition with these directions and observations.

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