Maa Kali Industries vs. State Of Chhattisgarh
Facts
The petitioner, Maa Kali Industries, filed a writ petition challenging an order dated 04.11.2022 passed by the Deputy Commissioner (Respondent No. 3) and an order dated 28.03.2024 passed by the Additional Commissioner (Appeal) (Respondent No. 2). The petition also challenged an attachment notice dated 16.01.2026. The petitioner's counsel submitted that due to the non-constitution of the Appellate Tribunal, they could not file a first appeal against the appellate authority's order. They relied on Circular No. 224/18/2024-GST dated 11.07.2024, which provides guidelines for recovery of outstanding dues when the first appeal has been disposed of and the Appellate Tribunal is not yet operational. The petitioner sought liberty to avail the alternative recovery mechanism by filing an undertaking and making the pre-deposit.
Held
The Court held that there was nothing further for adjudication in the writ petition, given the explicit guidelines for recovery of outstanding dues in cases where the first appeal has been disposed of, pending the operation of the Appellate Tribunal. The Court granted liberty to the petitioner to comply with the conditions stipulated in Circular No. 224/18/2024-GST dated 11.07.2024. This includes filing an undertaking with the jurisdictional proper officer, declaring the intention to file an appeal before the Appellate Tribunal as and when it becomes operational within the timelines specified in Section 112 of the CGST Act and the notification dated 17.09.2025. The petitioner must also pay the pre-deposit as per sub-section (8) of Section 112 of the CGST Act within 15 days of receiving the order copy, if not already deposited. Upon compliance, the recovery of the remaining amount of the orders dated 04.11.2022 and 28.03.2024 shall remain stayed as per sub-section (9) of Section 112 of the CGST Act. The order clarified that if the amount is not deposited within the stipulated period, the order would lose its efficacy.
Key Issues
1. Whether the petitioner can avail the benefit of stay on recovery of the confirmed demand as per sub-section (9) of Section 112 of the CGST Act, pending the constitution of the Appellate Tribunal, by complying with the procedure laid down in Circular No. 224/18/2024-GST dated 11.07.2024 and Notification No. S.O. 4220(E) dated 17th September, 2025. Petitioner's arguments: The petitioner contended that due to the non-constitution of the Appellate Tribunal, they are unable to file an appeal against the order of the appellate authority. They relied on Circular No. 224/18/2024-GST dated 11.07.2024, which provides a mechanism for taxpayers to make pre-deposit payments and obtain a stay on the remaining demand by filing an undertaking. They also referred to the notification dated 17.09.2025, which extends the timeline for filing appeals. The petitioner sought liberty to comply with these circulars and notifications. Revenue's arguments: The learned State Counsel did not oppose the prayer made by the petitioner.
Sections Cited
Section 112, Section 107(11)
AI-generated summary — verify with the full judgment below
1
2026:CGHC:17550
NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR WPT No. 55 of 2026 Maa Kali Industries Proprietorship Firm, Through Its Proprietor Manoj Kumar Dammani, Aged About 39 Years, S/o Rajkumar Dammani, 189/190, Infront Of Sbi Bank, Ramsagar Para, Raipur Chhattisgarh 492001
... Petitioner(s) versus
State Of Chhattisgarh Through Its Secretary, Department Of Commercial Tax Gst, North Block, Sector 19, Atal Nagar, Raipur Chhattisgarh
The Additional Commissioner (Appeal) State Tax, Chhattisgarh (Gst), Commercial Tax Gst Bhawan, North Block, Sector-19, Atal Nagar, Nava Raipur Chhattisgarh
The Deputy Commissioner State Tax, Raipur Circle I, Raipur Chhattisgarh 492001
Indian Bank Through Its Branch Manager Raipur Branch, Guru Nanak Chowk Raipur, District Raipur Chhattisgarh 492001
... Respondent(s) For Petitioner : Mr. Vikram Sharma, Advocate For State : Ms. Anuradha Jain, Dy. Government Advocate Hon’ble Shri Justice Rakesh Mohan Pandey Order on Board 17/04/2026 SIDDHANT TAMRAKAR TAMRAKAR Date: 2026.04.17 14:00
The judgment continues below.
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