W.P.(C) No.5171 of 2026

Facts of the Case

M/s. Shovan Steel Product challenged an order dated 12.06.2025 passed under Section 73 of the CGST/OGST Act, 2017 for the tax periods April 2021 to March 2022, which was affirmed in appeal by the Appellate Authority on 02.12.2025. The petitioner approached the Orissa High Court under Article 226 on the ground that the statutory second-appeal remedy under Section 112 before the Goods and Services Tax Appellate Tribunal (GSTAT) was not available since the GSTAT had not been constituted and made functional, leaving the petitioner without an effective remedy against the appellate order.

Issues Involved

  1. Whether a writ petition is maintainable when the statutory forum of appeal under Section 112 is not yet functional.
  2. Whether the mandatory pre-deposit under Section 112(8) can be dispensed with merely because the GSTAT has not been constituted.
  3. How the staggered GSTAT e-filing timeline notified by the Government applies to the petitioner's case.

Petitioner's Arguments

  • Counsel for the petitioner submitted that although Section 112 provides an appellate remedy before the GSTAT, that remedy was not available since the Tribunal had not been constituted and made functional.
  • It was argued that the aggrieved person could not be left remediless merely because the forum of appeal had not come into existence.

Respondent's Arguments

  • The Junior Standing Counsel for the Department conceded the non-functionality of the GSTAT but submitted this did not absolve the petitioner from complying with the mandatory pre-deposit under Section 112(8).
  • The Department relied on notification S.O. No.4220(E) dated 17.09.2025 and the staggered GSTAT e-filing timeline fixing 30.06.2026 as the outer date for filing appeals, arguing the forum was now functional and appeals could proceed within the notified schedule.

Court Order / Findings

  • The Court held that a writ court may be approached where the statutory forum is not functional, but where conditions are attached to filing an appeal, strict compliance with those conditions must be ensured and cannot be bypassed through the writ route.
  • Noting that the GSTAT was now functional with a notified filing schedule, the Court found it inappropriate to keep the writ petition pending, since the dispute could be adjudicated by the Tribunal.
  • The writ petition was disposed of with directions: the petitioner was to deposit the amount required under Section 112(8) and file the appeal within the notified timeline per the "User Advisory for the GSTAT e-Filing Portal"; upon compliance, the appeal was to be entertained by the GSTAT. The Court expressed no opinion on the merits of the first appellate order.

Important Clarification

  • Non-constitution or delayed functioning of the GSTAT is a recognised ground for invoking writ jurisdiction, but it does not dilute the mandatory pre-deposit condition under Section 112(8) once the Tribunal becomes operational.
  • Taxpayers awaiting GSTAT functionality should track the staggered filing windows notified by the Government, since delayed filing within the outer date (30.06.2026, as notified) remains permissible without loss of remedy.

Sections Involved

  • Section 73, CGST/OGST Act, 2017 — determination of tax not paid, short paid, or ITC wrongly availed, for reasons other than fraud.
  • Section 112, CGST Act, 2017 — provides for appeal to the GST Appellate Tribunal against orders of the first Appellate Authority.
  • Section 112(8), CGST Act, 2017 — mandates pre-deposit of admitted tax and ten percent of the disputed tax (subject to a cap) as a condition for filing the second appeal.

Decision – In Favour of

The writ petition was disposed of with directions rather than a clean win for either side; the petitioner was permitted to pursue its appellate remedy before the GSTAT on condition of complying with the Section 112(8) pre-deposit within the notified timeline, with the merits of the underlying demand left open.

Case Details

Court: High Court of Orissa at Cuttack
Case Number: W.P.(C) No.5171 of 2026
Coram: Hon'ble the Chief Justice Harish Tandon and Hon'ble Mr. Justice Murahari Sri Raman
Date of Order: 16.04.2026

Link to Download the Order

Click here to view/download the full order

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.