Once Merits are Examined by GST Appellate Authority, Writ Court’s Intervention Narrow: Orissa HC [Read Order]

The Orissa High Court refused to interfere with a GST appellate order that had rejected the appeal both for non-payment of the mandatory 10% pre-deposit and on merits. The Court held that even if the technical ground was incorrect, the separate findings on merits were reasonable and enough to uphold the order.

The Petitioner, M/s Digambar Road lines, challenged an appellate order under the Odisha Goods and Services Act, 2017, dated 25.08.2025, which upheld a demand for duty, interest, and penalty. The petitioner chose to file the instant writ petition because they were unable to deposit the mandatory 10% pre-deposit under Section 107(6) of the GST Act.

Understanding Common Mode of Tax Evasion with Practical Scenarios, Click Here

The Section 107(6) of the Odisha Goods and Services Act, 2017 explained that: Appeals to Appellate Authority.

“No appeal shall be filed under sub-section (1), unless the appellant has paid-

(a)in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him; and

(b) a sum equal to ten per cent of the remaining amount of tax in dispute arising from the said order, [subject to a maximum of [twenty] crore rupees,] in relation to which the appeal has been filed:

Provided that no appeal shall be filed against an order under sub-section (3) of section 129, unless a sum equal to twenty-five per cent. of the penalty has been paid by the appellant.”

The Petitioner claimed to file the appeal online but faced Portal issues, which constrained him to file the appeal in a physical form and despite requests, were not given access to deposit the amount. It was perceived by the petitioner that such appeal which is disposed of by the appellate authority was, non est appeal, which ought not to have been decided.

They cited previous High Court Rulings rendered in M/s. GAEA Engineers and Contractors Private Limited vs. Chief Commissioner of CGST & Central Excise, Odisha and others and M/s.Harsheel Auto Planet, Sundergarh vs. Commissioner (Appeals), CGST, Central Excise & Customs and others, wherein appeals dismissed on technical grounds, were deemed illegal, especially when authorities failed to guide the appellant on the deposit.

Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here

The two-member bench consisting of Chief Justice Harish Tandon and Judge M.S Raman, heard and reviewed the matter challenged by the Petitioner.

The High Court noted that in the cited cases, appeals were admitted and then dismissed only on technical grounds. The Court dismissed the appeal on two grounds, firstly, non-observance and/or fulfilment of the conditions under Section 107(6) of the Odisha Goods and Services Act, 2017 and secondly, on merit.

“Once the appellate authority decided the case on merit, the Writ Court should be slow and circumspect in interfering with such order unless the findings returned in the order of the appellate authority is per se illegal, irrational, unreasonable and de-hors the parameters of law set forth in this regard” said the bench.

Further, the High Court said that a Writ Court should be hesitant to interfere with an order decided on merits unless the findings are illegal, irrational, or perverse. It held that even if one ground for dismissal (the technical one) might be questionable, the decision stood valid if justified by the findings on the merits.

Thus, the High Court finding no irrational, unreasonable, or perverse findings on the merits of the case, dismissed the writ petition.

Support our journalism by subscribing to Taxscanpremium. Follow us on Telegram for quick updates