2025 (7) TMI 1624 - HC - GST

Filing of second appeal before GST appellate tribunal - though the Tribunal has been notified in the State of Chhattisgarh the president or the members have not yet been appointed - HELD THAT - Particularly considering the order dated 03.12.2019 issued by the Central Board of Indirect Taxes and Customs and also considering the order dated 09.05.2024 passed by the Co-ordinate Bench in WPT No. 40/2023 and other connected matters 2024 (5) TMI 1549 - CHHATTISGARH HIGH COURT this Court finds it appropriate to direct that as soon as the President or State President enters the office of Goods and Service Tax Appellate Tribunal constituted under the Act of 2017 the petitioner may invoke the aforesaid provision for filing an appeal after statutory deposit. On such appeal being filed the concerned Authority shall decide the same strictly in accordance with law. The statutory stay as provided under Section 112 (9) of the Act 2017 would remain in operation till the decision of said appeal. Petition disposed off.

Summary

ISSUES:

Whether the petitioner can file a second appeal before the Goods and Service Tax Appellate Tribunal despite the Tribunal not being fully constituted.Whether the limitation period for filing an appeal under Section 112 of the Chhattisgarh Goods and Service Tax Act, 2017 (the Act 2017) is to be computed from the date of communication of the order or from the date the President or State President of the Appellate Tribunal assumes office.Whether the statutory stay under Section 112(9) of the Act 2017 applies pending the filing and disposal of the appeal before the Goods and Service Tax Appellate Tribunal.Whether the petitioner's failure to deposit the required amount within a specified time affects the efficacy of the Court's order.

RULINGS / HOLDINGS:

The petitioner may file the second appeal before the Goods and Service Tax Appellate Tribunal as soon as the President or State President enters office, despite the Tribunal not being fully constituted at present.For the purpose of limitation under Section 112 of the Act 2017, the three-month period shall be considered to commence from the date the President or State President of the Appellate Tribunal assumes office, as per the Central Board of Indirect Taxes and Customs Order No. 09/2019-Central Tax dated 03.12.2019.The statutory stay under Section 112(9) of the Act 2017 shall remain in operation until the decision of the appeal filed before the Goods and Service Tax Appellate Tribunal.If the petitioner fails to deposit the amount required to file the appeal within 30 days from the date of the order, the order shall lose its efficacy.If the appeal is not filed within the prescribed period of limitation after the Tribunal is constituted, the State is entitled to proceed with recovery of tax, interest, and penalty in accordance with law.

RATIONALE:

The Court applied the statutory framework under the Chhattisgarh Goods and Service Tax Act, 2017, particularly Sections 107, 109, and 112, governing appeals and limitation periods.The Court relied on the Central Board of Indirect Taxes and Customs Order No. 09/2019-Central Tax, which clarifies that limitation for filing appeals before the Goods and Service Tax Appellate Tribunal starts from the date the President or State President assumes office, addressing difficulties arising from non-constitution of the Tribunal.The Court followed precedent set by a Co-ordinate Bench in a related matter, which recognized the need to allow filing of appeals upon constitution of the Tribunal and to maintain statutory stays during pendency.The decision reflects a pragmatic approach to ensure statutory rights of appeal are not defeated due to administrative delays in constituting the Tribunal, while preserving the State's right to recovery if procedural requirements are not met.