Right to Appeal Under Chhattisgarh GST s.112 Preserved; s.112(9) Stay Continues if Appeal Filed Against s.107 Order

HC entertained the writ petition only to the limited extent of preserving the petitioner's right to file a statutory appeal before the yet-to-be-functional GST Appellate Tribunal against the order passed under s.107 of the Chhattisgarh GST Act, 2017. HC directed that upon the President or State President assuming office in the Tribunal, the petitioner may file an appeal under s.112 after making the prescribed statutory pre-deposit, and the Tribunal shall decide it in accordance with law. The statutory stay under s.112(9) shall remain operative till disposal of the appeal. If the appeal is not filed within limitation, the State may proceed with recovery.

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1. ISSUES PRESENTED AND CONSIDERED

1.1 Whether, in the absence of a functional Goods and Services Tax Appellate Tribunal, the writ jurisdiction under Article 226 can be invoked against an order passed under Section 107 of the Chhattisgarh Goods and Services Tax Act, 2017.

1.2 Consequential directions regarding limitation for filing appeal before the Appellate Tribunal, operation of statutory stay under Section 112(9) of the Act, 2017, and conditions attached to such benefit.

2. ISSUE-WISE DETAILED ANALYSIS

Issue 1 - Maintainability of writ petition in view of non-functional Goods and Services Tax Appellate Tribunal

Interpretation and reasoning:

2.1 The Court recorded that, under the scheme of the Act, 2017, a second appeal lies before the Goods and Services Tax Appellate Tribunal, which has been notified in the State, but the President and Members have not yet been appointed and the Tribunal is therefore not functional.

2.2 The Court noted the earlier decision of the Co-ordinate Bench wherein, in identical circumstances, liberty was given to the assessee to file an appeal before the Tribunal as soon as the President or State President enters office, with a direction that such appeal be decided on merits in accordance with law.

2.3 The Court also took into account the order dated 03.12.2019 (Order No. 09/2019-Central Tax) issued by the Central Board of Indirect Taxes and Customs, which clarifies that, for purposes of Section 112(1) and 112(3) of the Act, 2017, where the Tribunal has not been constituted, the period of three months for filing appeal is to be computed from the date on which the President or State President of the Appellate Tribunal, after its constitution under Section 109, enters office.

2.4 It was further noticed that, after the said CBIC order, limitation had been extended and the date of filing appeal notified by subsequent notification dated 17.09.2025, and that both sides agreed to disposal of the writ petition with liberty to approach the Tribunal when functional.

Conclusions:

2.5 The Court did not quash the impugned appellate order under Section 107 but, instead, held it appropriate to dispose of the writ petition by directing that, as soon as the President or State President enters the office of the Goods and Services Tax Appellate Tribunal constituted under the Act, 2017, the petitioner may invoke the said provisions to file an appeal along with the requisite statutory deposit.

2.6 The authority concerned was directed to decide such appeal strictly in accordance with law on its own merits.

Issue 2 - Limitation, statutory stay under Section 112(9), and conditions for availing benefit

Legal framework (as referred to in the judgment):

2.7 The Court referred to: (i) Section 112(1) of the Act, 2017, governing limitation for filing appeal before the Appellate Tribunal; (ii) Section 112(9) of the Act, 2017, providing for statutory stay; (iii) CBIC Order dated 03.12.2019 regarding computation of limitation linked to the date of the President/State President entering office; and (iv) a Circular dated 11.07.2024 relating to deposit required for filing appeal.

Interpretation and reasoning:

2.8 Relying on the CBIC order dated 03.12.2019, the Court accepted that the start of the three-month period under Section 112(1) for filing an appeal before the Appellate Tribunal is to be reckoned from the date on which the President or State President, as the case may be, of the Appellate Tribunal enters office, in situations where the Tribunal had not been functional earlier.

2.9 The Court held that, on filing of the appeal along with the statutory deposit, the statutory stay envisaged under Section 112(9) of the Act, 2017 would continue to operate until the appeal is decided.

2.10 The Court clarified that the benefit of the directions is subject to the petitioner filing the appeal within the prescribed period of limitation, as computed in terms of the applicable statutory and administrative provisions.

2.11 The Court further imposed a condition that, if the amount required for filing the appeal is not deposited within 30 days from the date of the order, then, in light of the Circular dated 11.07.2024, the present order would lose its efficacy.

Conclusions:

2.12 The petitioner is permitted to file appeal before the Goods and Services Tax Appellate Tribunal as soon as the President or State President enters office, and, upon filing such appeal with statutory deposit, statutory stay under Section 112(9) shall remain in operation till disposal of the appeal.

2.13 If the appeal is not filed within the prescribed period of limitation (as so computed), the State is at liberty to proceed for recovery of remaining tax, interest and penalty, if any, in accordance with law.

2.14 If the statutory deposit required for filing appeal is not made within 30 days from the date of the Court's order, the benefit of the order stands forfeited and it ceases to have effect.

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