M/S Simran Construction vs. State Of Chhattisgarh

Facts

The petitioner, M/s Simran Construction, filed a writ petition before the Chhattisgarh High Court challenging an order dated July 4, 2023, passed by the Joint Commissioner (Appeals) under Section 107 of the Chhattisgarh Goods and Services Tax Act, 2017. The petitioner sought to set aside the appellate order and the consequent demand summary, requesting the matter be remanded for a decision on their claim for transitional credit based on submitted documents. The petitioner argued that the Goods and Services Tax Appellate Tribunal, though notified in Chhattisgarh, had not yet had its President or members appointed, preventing them from filing a second appeal. They relied on previous High Court orders and a Central Board of Indirect Taxes and Customs (CBIC) order dated December 3, 2019, which addressed the issue of delayed appeals due to the non-constitution of the Tribunal.

Held

The Court held that given the non-appointment of the President or State President of the Goods and Services Tax Appellate Tribunal, and considering the submissions of the parties, previous High Court orders, and the CBIC order dated December 3, 2019, it was appropriate to direct that the petitioner could file an appeal before the Tribunal once it is constituted and its President or State President enters office. The Court noted that the petitioner had already deposited the statutory deposit amount as mandated under Section 112(8) of the Act. The Court also clarified that the statutory stay under Section 112(9) would remain in operation until the appeal is decided. It was further made clear that if the appeal is not filed within the prescribed limitation period after the Tribunal's constitution, the State would be at liberty to proceed with recovery. The order would lose its efficacy if the statutory deposit was not made within 30 days from the date of the order, but the petitioner stated they had already made the deposit.

Key Issues

1. Whether the petitioner can maintain a writ petition before the High Court challenging the order of the Joint Commissioner (Appeals) when the statutory remedy of a second appeal before the Goods and Services Tax Appellate Tribunal is available but not practically accessible due to the non-appointment of Tribunal members? Petitioner's Argument: The petitioner contended that due to the non-constitution of the Goods and Services Tax Appellate Tribunal in Chhattisgarh, the statutory remedy of appeal under Section 112 of the CGST Act, 2017, was unavailable. They relied on a CBIC order (Order No. 09/2019-Central Tax) which clarified that the period of limitation for filing appeals would commence from the date the President or State President enters office. They also cited previous High Court judgments in similar situations (WPT No.91/2021 and WPT No.40/2023) where the Court allowed such petitions and granted liberty to file appeals once the Tribunal is functional. They further submitted that a notification dated September 17, 2025, had been issued regarding the date of filing appeals. State-Respondents' Argument: The State-respondents did not oppose the prayer made by the petitioner.