Facts of the Case

The petitioner, M/s. Shovan Steel Product, challenged an order dated 12 June 2025 passed under Section 73 of the CGST/Odisha GST Act, 2017 for tax periods April 2021 to March 2022, which was affirmed in appeal on 2 December 2025. Since the GST Appellate Tribunal (GSTAT) under Section 112 had not been constituted and made functional at the relevant time, the petitioner approached the High Court directly, arguing it could not be left remediless.

Issues Involved

  1. Whether a writ petition against an appellate order is maintainable where the statutory forum of second appeal (GSTAT) is not yet functional.
  2. Whether the pre-deposit condition under Section 112(8) of the GST Act must still be complied with once the GSTAT becomes functional, notwithstanding the earlier non-availability of that forum.

Petitioner's Arguments

  • The petitioner argued that since GSTAT had not been constituted and made functional, it could not be rendered remediless and the writ court should intervene.

Respondent's Arguments

  • The Junior Standing Counsel for the department agreed that GSTAT had not been functional, but argued this did not absolve the petitioner from the mandatory pre-deposit under Section 112(8) — full payment of admitted tax/interest/penalty plus 10% of the disputed tax (capped at Rs.20 crore) — once the forum became available.

Court Order / Findings

  • The Court noted the Department of Revenue's notification dated 17 September 2025 (S.O. No.4220(E)) fixing 30 June 2026 as the outer date for filing GSTAT appeals where the impugned order was communicated before 1 April 2026, along with the staggered GSTAT e-filing timelines and the President, GSTAT's subsequent procedural orders.
  • The Court held that once the statutory forum (GSTAT) has now been made functional, with an extended filing window, it would not be proper for the writ court to keep the petition pending, since the dispute can be adjudicated by that forum; the writ petition was accordingly disposed of rather than decided on merits.
  • The petitioner was directed to deposit the amount required under Section 112(8) and file the GSTAT appeal within the notified timeline, with the Court expressly clarifying it had not expressed any opinion on the merits of the first appellate order.

Important Clarification

  • With GSTAT now being made functional under the staggered notification schedule (filing windows keyed to when the first appeal/APL-01/APL-03 was filed, all closing by 30 June 2026), writ petitions filed earlier solely on the ground of GSTAT's non-constitution are being routinely disposed of with a direction to avail the GSTAT remedy, subject to compliance with the mandatory pre-deposit under Section 112(8).
  • The self-imposed limitation that a writ court will not interfere once an efficacious statutory forum exists applies with full force once GSTAT becomes operational, even where the writ was originally filed because that forum was absent.

Sections Involved

  • Section 73 of the CGST/Odisha GST Act, 2017 - governs determination of tax not paid for reasons other than fraud.
  • Section 112 of the CGST Act, 2017 - provides for appeal to the GST Appellate Tribunal, including the pre-deposit condition in sub-section (8).

Decision – In Favour of

The writ petition was disposed of with directions rather than decided on merits — a mixed outcome that is, in substance, in favour of the Department insofar as the original demand and first appellate order remain undisturbed and the petitioner must now pursue GSTAT with the statutory pre-deposit.

Case Details

High Court of Orissa at Cuttack, W.P.(C) No.5171 of 2026; Coram: Hon'ble The Chief Justice Harish Tandon and Hon'ble Mr. Justice Murahari Sri Raman; decided on 16 April 2026.

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