Delay in GSTAT Appointments Stops Appeal Clock: Chhattisgarh HC Grants Liberty to File Appeal with Statutory Stay [Read Order]

The Chhattisgarh High Court has held that the limitation period for filing a second appeal before the Goods and Services Tax Appellate Tribunal (GSTAT) stands deferred until the Tribunal becomes functional, as no President or Members have yet been appointed.

The Court further clarified that the statutory stay under Section 112(9) will continue to protect the assessee until the appeal is decided. The writ petition was accordingly disposed of with directions.

The petitioner M/s JP Construction Co. had challenged an appellate order dated 18 August 2025 passed under Section 107 of the Chhattisgarh GST Act, 2017, contending that the absence of a functional Tribunal had deprived it of its statutory remedy under Section 112.

Since the GSTAT has been notified but remains non‑operational due to the non‑appointment of the President and Members, the petitioner approached the High Court seeking the quashing of the order and consequential relief.

During the hearing, counsel for the petitioner submitted that the issue was squarely covered by the decision of a Co‑ordinate Bench in M/s Divya Steels v. State of Chhattisgarh (WPT No. 40/2023), where the Court had held that the limitation period for filing a second appeal would commence only when the President or State President of the GSTAT assumes office.

The petitioner also relied on CBIC Order No. 09/2019‑Central Tax dated 3 December 2019, which clarified that the three‑month limitation period under Section 112(1) would begin only from the date the Tribunal becomes functional, given that the Tribunal had not been constituted in many States. The petitioner, therefore, sought similar treatment and protection.

The State did not oppose the petitioner’s request, acknowledging that the Tribunal was not yet operational and that the petitioner could not be expected to file an appeal before a non‑existent forum. The Court took note of the statutory scheme, theCBIC clarification, and the earlier binding precedent, and held that the petitioner was entitled to invoke the extended limitation once the Tribunal became functional.

Justice Naresh Kumar Chandravanshi directed that as soon as the President or State President of the GSTAT enters office, the petitioner may file the second appeal along with the statutory pre‑deposit.

The Court further clarified that upon filing such an appeal, the statutory stay under Section 112(9) of the CGST Act would automatically operate until the appeal is decided on the merits. This ensures that no coercive recovery can be initiated against the petitioner during the pendency of the appeal.

However, the Court also cautioned that if the petitioner fails to file the appeal within the prescribed limitation period once the Tribunal becomes functional, the State would be free to proceed with the recovery of the remaining tax, interest, and penalty.

Additionally, the Court noted that if the statutory pre‑deposit is not made within 30 days from the date of the order, the benefit of the present order would lapse in terms of the Circular dated 11 July 2024.

With these directions, the writ petition and pending applications were disposed of.

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