Challenge against GST Order: Orissa HC Directs Assessee to Approach GSTAT, Mandates Pre-Deposit u/s 112(8) for Filing Appeal [Read Order]

The Orissa High Court disposed of a writ petition directing the assessee to approach the Goods and Services Tax Appellate Tribunal (GSTAT), mandating that the statutory pre-deposit requirement under Section 112(8) of the GST Act must be complied with, even though the Tribunal was not functional when the petition was initially filed.

Sri Chandrakanta Parida, the petitioner, challenged an order dated December 29, 2022 passed under Section 74, which was affirmed by the Appellate Authority on October 17, 2024. The petitioner approached the High Court under Article 226, contending that the alternative remedy of filing an appeal before the GSTAT was unavailable because the Tribunal had not yet been constituted or made functional.

The petitioner argued that the writ petition was maintainable because the statutory forum of appeal (GSTAT) was non-functional at the relevant time, leaving the aggrieved party remediless.

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The Standing Counsel acknowledged the delay in the GSTAT's constitution but argued that this does not absolve the assessee from complying with the mandatory conditions for filing an appeal, specifically the pre-deposit requirement under Section 112(8).

The Court noted that while a writ petition is maintainable when an appellate forum is non-functional, once the forum becomes functional, the statutory conditions must be strictly followed. The Court highlighted that the GSTAT is now functional and the Government has issued notifications (S.O. No. 4220(E)) extending the limitation period for filing appeals up to June 30, 2026, through a staggered timeline.

It was observed that "users are strongly advised not to hurry," as sufficient time has been provided for filing appeals.

The Chief Justice Harish Tandon and Justice Murahari Sri Raman observed,

“Since the forum has already been provided in the statute, which is now made functional and the period for filing the appeal has been extended in a fragmented manner, it would not be proper for the Writ Court to keep such writ petitions pending as the dispute raised by the petitioner in the instant writ petition can be adjudicated by the said forum and, therefore, the writ petition is disposed of with the following directions:

I. The petitioner is directed to deposit the amount if not already deposited, as required under sub-section (8) of Section 112 of the GST Act before the GSTAT to file the appeal within the period specified in the timeline mentioned above.

II. The petitioner, as undertaken, shall file appeal as per the timeline given in the “User Advisor for the GSTAT e-Filing Portal”.

III. In the event the appeal is filed and the same is found to be in order as per the requirement of Section 112 of the GST Act read with relevant Rules framed thereunder, the same shall be entertained by the GSTAT.”

The writ petition was disposed of and the petitioner was directed to approach the GSTAT.The Court mandated the petitioner to deposit the amount required under Section 112(8) ,admitted amount plus 10% of the disputed tax to file the appeal. The petitioner must file the appeal in accordance with the timeline provided in the "User Advisory for the GSTAT e-Filing Portal." The Court expressed no opinion on the merits of the case.

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