A writ petition filed by Maa Shakambari Steel Ltd. has been disposed of by the Chhattisgarh High Court. The Court allows the company to seek protection from GST recovery proceedings by following a Central Board of Indirect Taxes and Customs (CBIC) circular that applies in cases where the GST Appellate Tribunal is not yet operational.
The matter was heard by Rakesh Mohan Pandey, who examined a challenge to an order passed by the State tax authorities u/s 107(11) of the Chhattisgarh GST Act, along with a subsequent order rejecting the company’s rectification application under Section 161.
In the hearing, the applicant put reliance on CBIC Circular No. 224/18/2024-GST dated July 11, 2024, citing the process to be complied with where a taxpayer desires to submit an appeal to the GST appellate tribunal; however, the tribunal has not yet come into operation.
The circular allows the taxpayer to deposit the regulatory pre-deposit amount and submit an undertaking, citing that a plea shall be submitted once the tribunal becomes operational. If those measures are adopted, then the recovery of the left demand is to remain stayed u/s 112(9) of the CGST Act.
On September 17, 2025, the company referred to a notification issued by the Union government under Section 112 of the CGST Act, which furnishes that appeals might be submitted to the Tribunal up to 30 June 2026 in matters where the order asked to be appealed against was communicated before 1 April 2026, and in other cases the appeal should be submitted within 3 months from the date of communication of the order.
The applicant, as per that, requested that the writ petition be disposed of with a chance to follow the circular by submitting the needed undertaking and making the regulatory pre-deposit. The state did not counter the request.
Read Also: Chhattisgarh HC Rejects Writ Petition Seeking Refund of Plot Allotment Money After GST Demand
Justice Pandey said that the circular includes procedures for the recovery of dues in cases where the first appeal has been decided, but till now the appellate tribunal has not become functional, and stated that, as per this structure, nothing further is stayed for adjudication in the writ proceedings.
Thus, the court allowed the taxpayer company to submit the needed undertaking before the proper jurisdictional officer and to deposit the regulatory pre-deposit u/s 112(8) of the CGST Act within 15 days from receipt of a copy of the order, if the amount has been deposited. On these compliances, the recovery of the remaining demand shall remain stayed as per section 112(9) of the Act.
The court said that the order will lose its efficacy if the needed amount is not deposited within the mentioned duration.
The writ petition was disposed of with the same directions.
| Case Title | M/s Maa Shakambari Steel Limited vs. The Assistant Commissioner of State Tax Raigarh-1 |
| Civil Writ Petition No. | WPT No. 168 of 2023 |
| For Petitioner | Mr. Moulik Bhanshali, and Mr. Vivek Chopda |
| For Respondent | Ms. Anuradha Jain |
| Chhattisgarh High Court | Read Order |
