Facts of the Case

The petitioner, M/s. Chita Ranjan Lenka, challenged an order dated 30th July 2024 passed by the State Tax Officer, Cuttack-I City Circle, under Section 73 of the CGST/OGST Act, 2017 for the tax periods April 2019 to March 2020, which had been affirmed in appeal by the Appellate Authority on 13th October 2025. The petitioner's grievance was that although a further remedy of second appeal exists under Section 112 before the GST Appellate Tribunal (GSTAT), the Tribunal had, at the relevant time, not been constituted and made functional, leaving the petitioner without recourse.

Issues Involved

  1. Whether a writ petition challenging a first appellate GST order is maintainable where the statutory second-appeal forum, the GSTAT, has not yet been made functional.
  2. Whether the mandatory pre-deposit under Section 112(8) of the GST Act must still be complied with once the GSTAT becomes operational and a notified filing window is provided.

Petitioner's Arguments

  • Since the GSTAT had not been constituted and functional, the petitioner could not be rendered remediless and was entitled to invoke writ jurisdiction against the first appellate order.

Respondent's Arguments

  • Learned Standing Counsel for the CT & GST Department corroborated that the GSTAT had not been functional, but submitted this did not absolve the petitioner from the mandatory pre-deposit under Section 112(8) — full admitted tax/interest/penalty plus 10% of the remaining disputed tax, subject to a cap of Rs. 20 crore — once the appeal could be filed.

Court Order / Findings

  • The Court noted the Central Government's notification dated 17.09.2025 under Section 112(1), fixing 30.06.2026 as the date up to which appeals may be filed before the GSTAT for orders communicated before 01.04.2026, along with the staggered filing schedule under the GSTAT e-Filing Portal user advisory.
  • Reaffirming settled principle, the Court held it is well established that a writ court can entertain a challenge where the statutory appellate forum is not functional, but equally, where conditions are attached to filing that appeal, the writ court must ensure strict compliance with those conditions — a litigant cannot use the non-functional forum as a shelter to escape the pre-deposit requirement.
  • Since the GSTAT had by then been made functional and a staggered filing window was available, the Court held it was not proper to keep the writ petition pending, and disposed of it with directions rather than examining the merits of the First Appellate Order.
  • The petitioner was directed to deposit the amount required under Section 112(8), if not already deposited, and to file the second appeal before the GSTAT within the timeline specified in the notified staggered schedule, with the appeal to be entertained by the Tribunal if found compliant with Section 112 and the Rules, and the Court expressly clarified it had not expressed any opinion on the merits of the First Appellate Order.

Important Clarification

  • Non-constitution or non-functioning of the GST Appellate Tribunal justifies a writ court entertaining a challenge to a first appellate order, but this exception does not excuse the assessee from the mandatory pre-deposit under Section 112(8) once the Tribunal becomes functional and a filing window is notified — the writ court will insist on strict compliance rather than permit the petitioner to bypass the statutory condition.
  • Once the GSTAT is operational and a staggered e-filing schedule has been notified by the government, pending writ petitions of this nature are ordinarily disposed of with directions to file the second appeal within the notified timeline, without any adjudication of the underlying tax dispute.

Sections Involved

  • Section 73, CGST/OGST Act, 2017 – determination of tax not paid for reasons other than fraud, the subject of the original order.
  • Section 112, CGST Act, 2017 – second appeal to the GST Appellate Tribunal, including the sub-section (8) mandatory pre-deposit as a precondition for filing.
  • S.O. No. 4220(E) dated 17.09.2025 – Central Government notification fixing the timeline for filing appeals before the GSTAT.

Decision – In Favour of

Disposed of with directions, without a finding on merits — the writ petition was closed subject to compliance with the Section 112(8) pre-deposit and filing of the second appeal within the notified GSTAT timeline.

Case Details

  • Court: High Court of Orissa at Cuttack
  • Case No.: W.P.(C) No. 31131 of 2025
  • Coram: Hon'ble the Chief Justice Harish Tandon and Hon'ble Mr. Justice Murahari Sri Raman
  • Date of Order: 18 December 2025

Link to Download the Order

Click here to view/download the full order

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.