Person cannot "steal a march" by Writ petition to avoid complying with Mandate of S. 112(8) of GST Act: Orissa HC Reiterates Mandatory Pre-Deposit for GST Appeals [Read Order]

The Orissa High Court has dismissed a writ petition challenging a GST ( Goods and Services Tax ) order, reiterating that taxpayers must comply with the mandatory pre-deposit requirement before approaching the newly functional Goods and Services Tax Appellate Tribunal(GSTAT). The court observed that a person cannot "steal a march" by taking shelter in the writ court to avoid complying with the mandate of Section 112(8) of the GST Act.

The division bench of Chief Justice Harish Tandon and Justice M.S. Raman was hearing a petition filed by Kalandi Sahoo, challenging an order dated 16th December 2023 for the tax periods from April to November 2020, which was later affirmed by the Appellate Authority on 31st July 2025.

The petitioner had argued that the writ petition was maintainable as the statutory remedy of an appeal to the GSTAT was unavailable, as the tribunal had not been constituted and was non-functional, leaving him remediless.

The court noted that the Department of Revenue, Ministry of Finance, had issued a notification (S.O. No.4220(E) dated 17th September 2025) which had made the GSTAT functional and provided a detailed, staggered timeline until June 30, 2026, for filing pending appeals.

The court observed that while a writ petition is maintainable when a statutory forum is non-functional, a litigant cannot use this to bypass the statutory conditions attached to filing an appeal once that forum becomes operational.

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The court stated that a person cannot "steal a march" by taking shelter in the writ court to avoid complying with the mandate of Section 112(8) of the GST Act, which requires an appellant to pay the full amount of admitted tax, interest, and penalty, and a sum equal to 10% of the remaining disputed tax (up to a maximum of twenty crore rupees) before filing an appeal.

The High Court disposed of the writ petition and directed the petitioner to deposit the required pre-deposit amount and file an appeal before the GSTAT within the timeline specified in the "User Advisor for the GSTAT e-Filing Portal". The court clarified that it has not expressed any opinion on the merits of the First Appellate Order.

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