Facts of the Case

The petitioner, Pradipta Kumar Prahallada Swain, challenged an order dated 3rd February 2025 passed by the Assistant Commissioner of State Tax, Cuttack-II Circle, under Section 74 of the CGST/OGST Act, affirmed in appeal by the Appellate Authority on 14th August 2025. The petitioner's grievance was that the further statutory remedy of a second appeal to the GST Appellate Tribunal (GSTAT) under Section 112 was, at the relevant time, not practically available since the GSTAT had not been constituted and made functional.

Issues Involved

  1. Whether a writ petition assailing the First Appellate Order could be entertained on the ground that the GSTAT remained non-functional.
  2. Whether, with the GSTAT having since become functional pursuant to notifications extending the filing timeline, the writ court should decline to keep the matter pending and instead direct the petitioner to the Tribunal.
  3. Whether compliance with the mandatory pre-deposit under Section 112(8) was a precondition for entertaining the appeal before the GSTAT.

Petitioner's Arguments

  • Since the GSTAT had not been constituted and made functional, the statutory remedy of appeal under Section 112 was not available, and the petitioner could not be rendered remediless.

Respondent's Arguments

  • The Standing Counsel corroborated the fact regarding non-constitution/non-functioning of the GSTAT at the relevant time, but pointed out that this did not absolve the petitioner from complying with the mandate under Section 112(8), which bars filing of an appeal unless the appellant has paid, in full, the admitted amount of tax, interest, fine, fee and penalty, plus 10% of the remaining disputed tax (subject to a cap of Rs.20 crore).
  • Reliance was placed on Notification S.O.4220(E) dated 17.09.2025, extending time for filing appeals before the GSTAT up to 30.06.2026 for orders communicated before 01.04.2026, and the "User Advisory for the GSTAT e-Filing Portal" prescribing a staggered filing schedule based on the date of the first appeal's ARN/CRN.

Court Order / Findings

  • The Court held that while a writ court may be approached where the statutory appellate forum is not constituted or functional, since the GSTAT has now been made functional and the period for filing appeals has been extended in a fragmented/staggered manner, it would not be proper to keep such petitions pending when the dispute can be adjudicated by the GSTAT itself.
  • Where conditions (such as pre-deposit) are attached to filing an appeal before a statutory forum, the writ court must ensure strict compliance rather than permit a litigant to bypass them through writ jurisdiction.
  • 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 per the timeline in the User Advisory for the GSTAT e-Filing Portal.
  • The Court clarified it had not expressed any opinion on the merits of the First Appellate Order.

Important Clarification

  • With the GST Appellate Tribunal now operational under a staggered e-filing schedule fixed by CBIC notifications, the "GSTAT not constituted" ground for bypassing the second appeal via writ jurisdiction is no longer available; taxpayers must comply with the mandatory pre-deposit under Section 112(8) and file within the applicable window, failing which the appeal risks rejection.

Sections Involved

  • Section 74 of the CGST/OGST Act, 2017 — the original assessment provision under challenge.
  • Section 112 of the CGST Act, 2017 — governs appeals to the GST Appellate Tribunal, including the sub-section (8) pre-deposit condition.
  • Section 107 of the CGST Act, 2017 — the first appellate remedy already exhausted.

Decision – In Favour of

Disposed of with directions, without deciding the merits — the petitioner was directed to the GSTAT subject to compliance with pre-deposit and the staggered filing timeline.

Case Details

High Court of Orissa at Cuttack; W.P.(C) No.28655 of 2025; Coram: Chief Justice Harish Tandon and Justice Murahari Sri Raman; Order dated 27.11.2025.

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