Facts of the Case

In a second, related matter, M/s. Magnum Estates Private Limited challenged an order dated 27.08.2024 passed by the Superintendent, CGST & Central Excise, Balasore-1 Range, under Section 74 of the CGST/OGST Act, 2017, this time for the tax periods April 2021 to March 2022, which was affirmed in appeal by the Appellate Authority on 29.09.2025. As in its earlier writ petition on a different tax period, the petitioner's grievance was that although Section 112 provides a further appeal to the GST Appellate Tribunal (GSTAT), the Tribunal had not been constituted or made functional, leaving it without an operative forum, prompting recourse to the Orissa High Court.

Issues Involved

  1. Whether the writ petition is maintainable against the first-appellate order given the continued non-constitution of the GSTAT at the relevant time.
  2. Whether the petitioner must nonetheless comply with the Section 112(8) pre-deposit mandate once the GSTAT becomes functional, before its appeal can be filed and entertained.

Petitioner's Arguments

  • The Senior Advocate for the petitioner reiterated that since GSTAT was not functional, the statutory appeal remedy was practically unavailable, and the petitioner could not be left remediless.

Respondent's Arguments

  • The Junior Standing Counsel for the Department agreed on the fact of non-constitution/non-functioning of the GSTAT, but maintained this did not excuse compliance with the Section 112(8) pre-deposit — full payment of admitted tax, interest, fine, fee and penalty, plus 10% of the remaining disputed tax (capped at Rs. 20 crore).

Court Order / Findings

  • Following the same reasoning as in the petitioner's earlier matter, the Court held the writ is entertainable given the GSTAT's earlier non-functionality, but that a writ court must ensure strict compliance with statutory conditions once the forum is operational rather than allow the petitioner to bypass them.
  • Noting the Central Government's notification dated 17.09.2025 (staggered GSTAT filing windows, all closing not later than 30.06.2026) and the GSTAT e-Filing Portal user advisory, the Court held the forum is now functional and the dispute should proceed there.
  • The writ petition was disposed of directing the petitioner to deposit the amount required under Section 112(8) if not already deposited, and to file the appeal before the GSTAT within the staggered timeline applicable to its category of order under the e-Filing Portal advisory, with the appeal to be entertained if found in order.
  • The Court again clarified it had not expressed any opinion on the merits of the First Appellate Order.

Important Clarification

  • Where GSTAT non-constitution justifies invoking writ jurisdiction against a first-appellate GST order, the relief granted is procedural — access to the newly-functional Tribunal within its notified staggered timeline — and not a waiver of the Section 112(8) pre-deposit condition, which continues to bind the appellant regardless of the earlier remedy gap.

Sections Involved

  • Section 74, Central Goods and Services Tax Act, 2017 – demand for tax not paid by reason of fraud, wilful misstatement or suppression.
  • Section 112, Central Goods and Services Tax Act, 2017 – appeal to the GST Appellate Tribunal, including the sub-section (8) pre-deposit condition.

Decision – In Favour of

Disposed of with directions; not a merits determination — the assessee must pursue its challenge before the GSTAT subject to the statutory pre-deposit, with the First Appellate Order's merits left open.

Case Details

  • Court: High Court of Orissa at Cuttack
  • Case No.: W.P.(C) No.34239 of 2025
  • Coram: Chief Justice Harish Tandon and Justice Murahari Sri Raman
  • Date of Order: 04.12.2025

Link to Download the Order

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