G.K. Traders Through Its Proprietor Shri Chakresh Kumar Jain vs. The State Of Madhya Pradesh

Held

The Court considered the submissions made by both parties. The respondents informed the Court that the GST Appellate Tribunal is expected to start functioning from 01.04.2026. They also highlighted that filing an appeal before the Tribunal with a deposit of 10% of the disputed amount would grant an automatic stay, referencing Section 112(9) of the Central Goods and Services Tax Act, 2017. Furthermore, a notification exists for entertaining appeals until June 2026, which would prevent delay from being a hindrance. Given this context, the Court found it appropriate to relegate the matter back to the Appellate Tribunal. The petitioner was granted liberty to file an appeal before the Tribunal, where all available grounds could be raised based on the record, after depositing the requisite amount. The writ petition was disposed of with this liberty.

Facts

The petitioner, G.K. Traders, through its proprietor Shri Chakresh Kumar Jain, filed a writ petition before the Madhya Pradesh High Court at Gwalior. The petition sought to quash an ex parte order dated 25.06.2025, passed by Respondent No. 3, which imposed a demand of tax, interest, and penalty. The State of Madhya Pradesh and others were the respondents. The procedural history indicates that the petitioner is challenging an order that has likely proceeded ex parte, and the current writ petition is the avenue for relief.

Key Issues

1. Whether the ex parte order dated 25.06.2025 passed by Respondent No. 3, imposing tax, interest, and penalty on the petitioner, is liable to be quashed? The petitioner argued for the quashing of the ex parte order and the setting aside of the tax, interest, and penalty demand. The respondents, represented by the State, informed the Court that the GST Appellate Tribunal is scheduled to commence functioning from 01.04.2026. They further submitted that if the petitioner prefers an appeal before the Tribunal and deposits 10% of the disputed amount, it would operate as an automatic stay, as per Section 112(9) of the Central Goods and Services Tax Act, 2017. The respondents also pointed out that a notification has been issued to entertain appeals until June 2026, thus addressing potential delay issues.