Challenge against Order passed u/s 74 of CGST Act: Kerala HC Directs to appeal before GSTAT Considering Brink of Constitution [Read Order]

 In a recent petition, which is against an order passed under section 74 of the Goods and Services Tax Act (GST), 2017 , the Kerala High Court directed the petitioner to approach the second appellate authority, ie, the Goods and Services Tax Appellate Authority (GSTAT), considering the brink of constitution.

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M/S Gold King Fashion Jewellery, the petitioner, challenged the order of the first Appellate Authority dismissing an appeal challenging the order originally issued under Section 74 of the Central Goods and Services Tax Act, 2017 ('the Act'). Pursuant to the order, petitioner preferred a rectification petition, which was also dismissed.

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Though petitioner has a remedy by way of a second appeal to the Goods and Services Tax Appellate Tribunal, since the said Tribunal has not been constituted, petitioner has approached the Court. It is submitted that 20% of the disputed tax has already been paid by the petitioner as per orders, and the last two payments were made on 13.02.2025 and 14.02.2025.

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The court found that the tribunal is almost on the verge of being notified. Considering the aforesaid circumstances and also the claim of payment of 20% of the disputed tax, the single bench of Justice Bechu Kurian Thomas viewed that the petitioner ought to be relegated to pursue its statutory remedy of second appeal within a time limit of the constitution of the Tribunal.

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The petitioner is permitted to prefer an appeal against the orders before the Appellate Tribunal for Goods and Services Tax Act within 30 days of its constitution and notification, provided the petitioner pays 10% of the disputed tax as required under Section 112(8)(b) of the Act.

It was further held that “If the said amount has not already been paid, petitioner is given 30 days time from today to pay the said amount. If the said amount has already been paid, credit shall be given to that. All coercive proceedings for recovery pursuant to the order shall be kept in abeyance till the appeal as directed above is disposed of, provided the amount as contemplated under Section 112(8)(b) of the Act is paid.”

To Read the full text of the Order CLICK HERE

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