GST Tribunal Yet to Become Functional: Chhattisgarh HC Lets GTL Infrastructure Wait to File Statutory Appeal [Read Order]

The Chhattisgarh High Court has allowed the assessee to await the constitution of the GST Appellate Tribunal before pursuing its statutory second appeal under Section 112 of the Goods and Services Tax Act, 2017.

The company had approached the Court challenging the appellate order dated 06.03.2025 passed by the Joint Commissioner (Appeal), State Tax, Raipur, which upheld a disputed tax demand.

In absence of a functioning GST Tribunal, the petitioner, GTL Infrastructure Limited sought either remand of the case or a stay on the impugned order’s operation till the Tribunal becomes functional.

The court, citing previous rulings, especially the coordinate bench decision in M/s Divya Steels v. State of Chhattisgarh, reaffirmed that a taxpayer cannot be denied the right to appeal merely due to institutional delays in setting up the GSTAT.

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It took note of Order No. 09/2019 Central Tax dated 03.12.2019 issued by the CBIC, which clarifies that the time limit for filing appeals before the Tribunal would commence only from the date on which the Tribunal President or State President assumes office.

The petitioner argued and the State did not oppose that despite the GSTAT being notified in Chhattisgarh, appointments to key positions had not yet been made, thereby rendering the appellate forum non-functional.

In its ruling dated 24.07.2025, Justice Deepak Kumar Tiwari directed that GTL Infrastructure Ltd. may file its statutory second appeal before the GST Tribunal once the President or State President assumes charge.

The Court clarified that the statutory stay under Section 112(9) of the CGST Act shall remain in effect during the pendency of the appeal. However, it also clarified that if the assessee fails to file the appeal within the extended timeline once the Tribunal becomes operational, or if the required pre-deposit is not made within 30 days from the date of this order, the protection offered by the Court would lapse, and the State would be at liberty to proceed with recovery.

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