M/S. Nutan Ispat And Power Private Limited vs. State Of Chhattisgarh

Facts

The petitioner, M/s. Nutan Ispat And Power Private Limited, filed a writ petition before the Chhattisgarh High Court challenging an order dated 09.09.2020 passed by the Joint Commissioner (Appeal), State Tax, Raipur, under Section 107 of the Chhattisgarh Goods and Services Tax Act, 2017. The petitioner sought to quash this order and the liability imposed by the adjudicating authority. The petitioner stated that while a second appeal is provided before the Goods and Service Tax Appellate Tribunal, the Tribunal in Chhattisgarh has been notified, but its president and members have not yet been appointed, preventing the filing of a statutory appeal. The petitioner relied on a Co-ordinate Bench order and a Central Board of Indirect Taxes and Customs (CBIC) order dated 03.12.2019 which extended the limitation period for filing appeals due to the non-constitution of Tribunals.

Held

The Court held that it was appropriate to direct that as soon as the President or State President enters the office of the Goods and Service Tax Appellate Tribunal constituted under the Act of 2017, the petitioner may invoke the provision for filing an appeal after making the statutory deposit. The concerned Authority shall decide the appeal strictly in accordance with law. The statutory stay as provided under Section 112(9) of the Act, 2017, would remain in operation until the decision of the appeal. The Court clarified that if the appeal is not filed within the prescribed period of limitation after the Tribunal becomes functional, the State would be at liberty to proceed against the petitioner for recovery of tax, interest, and penalty. It was further clarified that if the amount required for filing the appeal is not deposited by the petitioner within 30 days from the date of the order, the order would lose its efficacy, in light of a Circular dated 11.07.2024. The petition was disposed of with these directions.

Key Issues

1. Whether the petitioner can maintain a writ petition before the High Court for challenging an order passed under Section 107 of the Chhattisgarh Goods and Services Tax Act, 2017, when the statutory appellate remedy before the Goods and Service Tax Appellate Tribunal is not effectively available due to the non-appointment of its President and members? Petitioner's Arguments: - The petitioner argued that the matter was decided by a Co-ordinate Bench in WPT No.40/2023, which allowed petitioners to file appeals once the Tribunal's President or State President takes office. - Reliance was placed on CBIC Order No.09/2019-Central Tax dated 03.12.2019, which clarified that for calculating the three-month period for filing an appeal under Section 112(1) of the Act, the start date would be when the President or State President enters office after the Tribunal's constitution. - The petitioner also mentioned a notification dated 17.09.2025, which further notified the date for filing appeals, suggesting an extension of limitation. - Therefore, the petitioner prayed for the disposal of the writ petition with liberty to invoke the appellate provision along with statutory deposit. Respondents' Arguments: - The learned counsel for the respondents did not oppose the prayer made by the petitioner.