Facts of the Case

M/s. Magnum Estates Private Limited challenged an order dated 22.08.2024 passed by the Superintendent, CGST & Central Excise, Balasore-I Range, under Section 74 of the CGST/OGST Act, 2017 for the tax periods 2019-20 to 2021-22, which was affirmed in appeal by the Appellate Authority on 29.09.2025. Although a further appeal lies to the Goods and Services Tax Appellate Tribunal (GSTAT) under Section 112, the Tribunal had not been constituted and made functional, leaving the petitioner without an operative forum. The petitioner accordingly approached the Orissa High Court under Article 226.

Issues Involved

  1. Whether a writ petition against a first-appellate GST order can be entertained solely because the statutory forum of second appeal, the GSTAT, is not yet constituted or functional.
  2. Whether an assessee approaching the writ court in such circumstances is nonetheless bound to comply with the pre-deposit mandated under Section 112(8) before the GSTAT once it becomes operational.

Petitioner's Arguments

  • The petitioner argued that since the GSTAT had not been constituted, the statutory remedy of second appeal was practically unavailable, and an aggrieved person could not be rendered remediless.

Respondent's Arguments

  • The Junior Standing Counsel for the department conceded that the GSTAT was not functional at the relevant time, but argued this did not absolve the petitioner from complying with Section 112(8), which bars filing an appeal unless the admitted tax is paid in full and 10% of the remaining disputed tax (up to Rs. 20 crore) is deposited.

Court Order / Findings

  • The Court held it is well settled that a writ can be entertained against an appellate order where the further statutory forum is not functional, since a person cannot be left remediless; equally, where conditions attach to that forum, the writ court must ensure strict compliance with them rather than allow a departure from the statute.
  • Noting the Central Government's notification dated 17.09.2025 (staggered GSTAT filing windows ending not later than 30.06.2026) and the GSTAT e-filing portal advisory, the Court held the forum is now functional and the dispute should be adjudicated there rather than kept pending in writ.
  • The petitioner was directed to deposit the amount required under Section 112(8) and file the appeal before the GSTAT within the staggered timeline notified for its category of order, in terms of the e-Filing Portal advisory.
  • The Court expressly clarified it had not expressed any opinion on the merits of the First Appellate Order.

Important Clarification

  • Non-constitution of an appellate tribunal opens the door to writ jurisdiction, but does not dispense with statutory pre-conditions such as the Section 112(8) pre-deposit once the tribunal becomes functional — an assessee cannot use the interregnum to bypass the deposit requirement.

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 Appellate Tribunal (GSTAT), including the sub-section (8) pre-deposit condition.
  • Article 226, Constitution of India – writ jurisdiction, invoked pending constitution of the GSTAT.

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.35676 of 2025
  • Coram: Chief Justice Harish Tandon and Justice Murahari Sri Raman
  • Date of Order: 15.01.2026

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