Gtl Infrastructure Limited vs. The State Of Chhattisgarh

Facts

The Petitioner, GTL Infrastructure Limited, filed a writ petition before the Chhattisgarh High Court challenging an order dated March 6, 2025, 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 remand the matter for fresh adjudication. The primary reason for approaching the High Court was the non-constitution of the Goods and Services Tax Appellate Tribunal in Chhattisgarh, preventing the filing of a second appeal. The Petitioner relied on a previous order of the High Court in WPT No. 40/2023 and a circular from the Central Board of Indirect Taxes and Customs (CBIC) dated December 3, 2019, which addressed the issue of limitation for filing appeals due to the non-constitution of the Tribunal.

Held

The High Court allowed the writ petition, disposing of it with directions. The Court acknowledged the Petitioner's inability to file a second appeal due to the non-functional Goods and Services Tax Appellate Tribunal in Chhattisgarh. Citing the previous order in WPT No. 40/2023 and the CBIC's order dated December 3, 2019, the Court directed that as soon as the President or State President enters office of the Goods and Services Tax Appellate Tribunal, the Petitioner may file an appeal after making the statutory deposit. The concerned Authority shall decide this appeal strictly in accordance with law. The Court also held that the statutory stay under Section 112(9) of the Act would remain in operation until the decision of the appeal. It was clarified that if the appeal is not filed within the prescribed limitation period after the Tribunal's constitution, the State can proceed with recovery. Additionally, if the statutory deposit is not made within 30 days from the date of the order, the order would lose its efficacy. No issue was expressly left undecided.

Key Issues

1. Whether the Petitioner can seek relief from the High Court by way of a writ petition when a statutory remedy of a second appeal is available under Section 112 of the CGST Act, 2017, but the Appellate Tribunal is not yet functional in the State? Petitioner's Arguments: The Petitioner argued that due to the non-appointment of the President or members of the Goods and Services Tax Appellate Tribunal in Chhattisgarh, the statutory second appeal remedy is unavailable. They relied on a coordinate bench's order in WPT No. 40/2023, which suggested filing an appeal once the Tribunal is constituted. Furthermore, the Petitioner cited CBIC Order No. 09/2019-Central Tax dated December 3, 2019, which clarified that the limitation period for filing an appeal would commence from the date the President or State President enters office. Therefore, the Petitioner sought liberty to file an appeal after the Tribunal's constitution, with the benefit of extended limitation, and a stay on the appellate order. Respondents' Arguments: The respondents did not oppose the Petitioner's prayer.