Facts of the Case

The petitioner, M/s Simran Construction, challenged an order dated 04.07.2023 passed by the Joint Commissioner (Appeals), State Tax, Raipur under Section 107 of the Chhattisgarh GST Act, seeking remand of its claim of transitional credit for verification on merits. Since the second appellate forum – the GST Appellate Tribunal – though notified for Chhattisgarh, had no President or members appointed, the petitioner could not avail the statutory second appeal and instead approached the High Court under Article 226.

Issues Involved

  1. How should a taxpayer's right of second appeal under Section 112 of the CGST Act be protected where the GST Appellate Tribunal, though notified, is not yet functional for want of a President/members.
  2. What relief and interim protection should be granted pending constitution of the Tribunal.

Petitioner's Arguments

  • The matter is squarely covered by this Court's own orders in M/s Nutan Ispat and Power Pvt. Ltd. and M/s Divya Steels, where liberty was granted to file an appeal once the Tribunal's President/State President enters office.
  • CBIC Order No. 09/2019-Central Tax dated 03.12.2019 clarifies that the limitation period for filing an appeal before the Tribunal is to be computed from the date the President/State President enters office.
  • Following a notification dated 17.09.2025, the window for filing appeals has since been notified, and the petitioner should be granted liberty to invoke this provision along with the statutory deposit.

Respondent's Arguments

  • The State-respondent did not oppose the prayer for liberty to file an appeal once the Tribunal becomes functional.

Court Order / Findings

  • The Court, considering the CBIC order dated 03.12.2019, the notification dated 17.09.2025, and its own coordinate-bench precedents, directed that as soon as the President or State President enters office of the GST Appellate Tribunal, the petitioner may invoke the relevant provision for filing a second appeal after making the statutory deposit.
  • On such appeal being filed, the concerned authority (Tribunal) was directed to decide it strictly in accordance with law, with the statutory stay under Section 112(9) to remain in operation until the appeal is decided.
  • It was clarified that if the appeal is not filed within the prescribed limitation period (once triggered), the State would be free to proceed for recovery, and that failure to deposit the statutory amount within 30 days would cause the order to lose its efficacy – though the petitioner had already deposited the amount required under Section 112(8).

Important Clarification

  • Pending constitution of the GST Appellate Tribunal, taxpayers are entitled to a protective order preserving their right of second appeal, with limitation computed from the date the Tribunal's President/State President enters office, and the statutory stay against recovery under Section 112(9) continuing to operate in the interim, provided the Section 112(8) pre-deposit is made.

Sections Involved

  • Section 107, CGST/State GST Act, 2017 – first appeal to the Joint Commissioner (Appeals).
  • Section 112(8) & (9), CGST Act, 2017 – pre-deposit for second appeal to the Appellate Tribunal and the consequential stay on recovery of the balance amount.

Decision – In Favour of

Disposed of in favour of the Assessee; liberty granted to file a second appeal once the Tribunal is functional, with the statutory stay to continue in the interim.

Case Details

High Court of Chhattisgarh at Bilaspur; WPT No. 51 of 2024; Coram: Hon'ble Shri Justice Naresh Kumar Chandravanshi; Order dated 17.12.2025.

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