Facts of the Case

M/s Vedehi Construction LLP, a registered GST dealer, sought quashing of an appellate order dated 11.11.2022 passed against it. Its principal grievance was that the Goods and Services Tax Appellate Tribunal (GSTAT), despite the GST regime being in force since 2017, remained non-functional, leaving it without any statutory forum to pursue a second appeal under Section 112 of the CGST/RGST Act. In the absence of the Tribunal, the petitioner approached the High Court directly under Article 226.

Issues Involved

  1. Whether a writ petition can be entertained against an appellate order where the statutory second-appeal forum (GSTAT) is not yet functional.
  2. On what terms can such a petition be disposed of so as to protect both the petitioner's right of appeal and the Revenue's interest in recovery.

Petitioner's Arguments

  • The GSTAT not being constituted or functional leaves the petitioner remediless against the appellate order, warranting the writ court's intervention.

Respondent's Arguments

  • Relied on the Court's own earlier ruling in Komal Marbles v. State of Rajasthan & Ors. [2024:RJ-JD:7895-DB], where a similar petition was disposed of with liberty to appeal once the Tribunal is constituted, subject to compliance with Section 112(8) and a government circular dated 23.03.2020.

Court Order / Findings

  • Following its own decision in Komal Marbles, the Court disposed of the petition in the same terms rather than keeping it pending indefinitely.
  • The petitioner was directed to deposit the amount payable under Section 112(8) of the Act within six weeks, protecting it from recovery of the balance amount in the interim.
  • Since the Tribunal remains non-functional, an appeal filed within three months from the date of its constitution shall be treated as filed within limitation.
  • The petitioner was given liberty to seek early disposal of the appeal once filed, which the Tribunal shall consider expeditiously in accordance with law.

Important Clarification

  • Where the GSTAT has not been constituted, taxpayers are not rendered remediless: a writ petition can be disposed of protecting the right to appeal within a fixed window (three months from the Tribunal's constitution) once the Section 112(8) pre-deposit is made.
  • The Section 112(8) deposit obligation subsists independently of the Tribunal's functionality, and compliance with it is what preserves the petitioner's recovery protection during the interim.

Sections Involved

  • Section 112, CGST Act, 2017 — constitution of and appeals before the GST Appellate Tribunal.
  • Section 112(8), CGST Act, 2017 — mandatory pre-deposit for filing a second appeal.

Decision – In Favour of

Disposed of with directions, in part in favour of the Assessee — the petitioner's right of appeal before the GSTAT is preserved subject to the statutory deposit, without any finding on the merits of the underlying dispute.

Case Details

High Court of Judicature for Rajasthan, Bench at Jaipur; D.B. Civil Writ Petition No. 5373/2025; Coram: Hon'ble Mr. Justice Avneesh Jhingan and Hon'ble Mr. Justice Anand Sharma; Order dated 30.05.2025.

Link to Download the Order

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