M/S Arbaz Hardware Through Sole Proprietor Haider Ali vs. Union Of INDIA

Held

The Court, considering the non-functioning of the GST Appellate Tribunal, did not examine the merits of the impugned orders. Instead, it granted liberty to the petitioner to avail the remedy provided in para 3 of the Circular No. 224/18/2024 - GST dated 11th July, 2024. This circular states that if an appeal is filed in accordance with Section 112(8) of the CGST Act with the prescribed pre-deposit, recovery proceedings for the balance amount shall be deemed stayed until the disposal of the appeal as per Section 112(9) of the CGST Act. The writ petition was disposed of with this liberty granted. No specific issue was expressly left undecided, but the merits of the original orders were not adjudicated.

Facts

The petitioner, M/s Arbaz Hardware, through its sole proprietor Haider Ali, filed a writ petition before the Madhya Pradesh High Court at Indore challenging orders passed by the assessing officer and the appellate authority under the GST Act. The petitioner stated that while an appeal to the GST Appellate Tribunal was available under Section 112 of the GST Act, this remedy was not accessible as the Tribunal was not functioning. The State counsel brought to the Court's notice Circular No. 224/18/2024 - GST dated 11th July, 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.

Key Issues

1. Whether the petitioner can avail a remedy before the High Court under Article 226 of the Constitution of India when a statutory appeal to the GST Appellate Tribunal is provided but not functional? Petitioner's Contention: The petitioner argued that due to the non-functioning of the GST Appellate Tribunal, their statutory remedy of appeal under Section 112 of the GST Act is unavailable, necessitating recourse to the writ jurisdiction of the High Court. They relied on the principle that writ jurisdiction is available when statutory remedies are exhausted or unavailable. Revenue/State's Contention: The State counsel brought to the Court's notice Circular No. 224/18/2024 - GST dated 11th July, 2024, which provides guidelines for recovery of outstanding dues in cases where the first appeal has been disposed of and the Appellate Tribunal is not functioning. This circular suggests a procedural recourse for such situations.