Facts of the Case

GTL Infrastructure Limited challenged an order dated 06.03.2025 passed by the Joint Commissioner (Appeal), State Tax, Raipur, under Section 107 of the Chhattisgarh Goods and Services Tax Act, 2017, dismissing its first appeal (Appeal Case No. 804/GST/2024) and the consequent summary of demand. Since the statutory second appeal against such an order lies to the GST Appellate Tribunal, which — though notified for Chhattisgarh — has no President or Members appointed, the petitioner was compelled to approach the High Court under Article 226 instead. The Chhattisgarh High Court at Bilaspur, per Justice Deepak Kumar Tiwari, heard and finally decided the matter with the parties' consent on 24 July 2025.

Issues Involved

  1. What remedy is available to a GST appellant against a Section 107 appellate order where the GST Appellate Tribunal has been notified but remains unconstituted for want of a President/Members.
  2. Whether limitation for filing the second appeal should be reckoned from the date the Tribunal's President/State President assumes office, per CBIC Removal of Difficulties Order No. 09/2019-Central Tax.
  3. Whether the statutory stay under Section 112(9) should continue meanwhile.

Petitioner's Arguments

  • Sought quashing of the appellate order dated 06.03.2025 and the summary of demand, or in the alternative, a stay of its effect until the second appeal could be decided by the GST Appellate Tribunal, since the Tribunal has been notified for Chhattisgarh but no President or Members have yet been appointed.
  • Relied on the coordinate-Bench order in M/s Divya Steels v. State of CG (WPT No.40/2023 and batch, dated 09.05.2024), which had granted similar relief pending constitution of the Tribunal.
  • Relied on CBIC Order No. 09/2019-Central Tax dated 03.12.2019, clarifying that the three-month limitation period under Section 112(1) for filing an appeal before the Tribunal runs from the date the President/State President enters office, and sought disposal on that basis with liberty to appeal once the Tribunal is functional.

Respondent's Arguments

  • Learned counsel for the respondents did not oppose the relief sought by the petitioner, effectively concurring that the matter be disposed of in line with the Divya Steels precedent and the CBIC Removal of Difficulties Order, pending constitution of the GST Appellate Tribunal in Chhattisgarh.

Court Order / Findings

  • The Court noted that the second appeal against an order under Section 107 lies to the GST Appellate Tribunal, and that although notified for the State, the Tribunal remains non-functional for want of a President/State President.
  • Where the GST Appellate Tribunal has not become functional, the limitation period of three months under Section 112(1) for filing a second appeal is reckoned from the date the President or State President of the Tribunal enters office, per CBIC Order No. 09/2019-Central Tax, and the statutory stay under Section 112(9) continues to operate in the interregnum.
  • The petitioner was directed to invoke this provision and file the second appeal, along with the statutory pre-deposit, as soon as the Tribunal's President/State President assumes office; the appellate authority shall then decide it strictly in accordance with law.
  • The Court clarified that if the appeal is not filed within the extended limitation, the State is at liberty to proceed for recovery; and if the pre-deposit is not made within 30 days of the order, the order loses its efficacy.

Important Clarification

  • Pending constitution of State Benches of the GST Appellate Tribunal, an assessee aggrieved by a Section 107 appellate order need not remain remediless: the writ court can direct that limitation for the second appeal run from the date the Tribunal's President/State President takes office, per the CBIC Removal of Difficulties Order No. 09/2019-Central Tax.
  • The statutory stay of recovery under Section 112(9) — attaching to filing an appeal with pre-deposit — continues to protect the assessee through this interim period, provided the pre-deposit is made within the time fixed by the Court.

Sections Involved

  • Section 107, CGST/CGGST Act, 2017 — first appeal to the Appellate Authority.
  • Section 109 & Section 112, CGST/CGGST Act, 2017 — constitution of and appeal to the GST Appellate Tribunal, including the limitation period and mandatory pre-deposit under Section 112(9).
  • CBIC Order No. 09/2019-Central Tax dated 03.12.2019 — Removal of Difficulties order on limitation pending constitution of the Tribunal.

Decision – In Favour of

Disposed of with directions, in favour of the assessee to the extent of preserving its second-appeal remedy and the interim statutory stay pending constitution of the Tribunal.

Case Details

Court: High Court of Chhattisgarh at Bilaspur. Case No.: WPT No. 106 of 2025 (2025:CGHC:35661). Coram: Hon'ble Shri Justice Deepak Kumar Tiwari. Date of Order: 24 July 2025.

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