The Chhattisgarh High Court has ruled in a case involving a construction company in Korba. The company was challenging a GST (Goods and Services Tax) order. The court stated that the company can file an official appeal once the Goods and Services Tax Appellate Tribunal, the body that handles such disputes, is fully operational in the state.
Interim protection has been granted by the bench of Justice Naresh Kumar Chandravanshi by directing that the statutory stay under the GST law would continue till the appeal is decided, subject to compliance with deposit requirements.
Under Article 226 of the Constitution, the petition was submitted against an order on August 18, 2025, passed via Joint Commissioner (Appeal), Central GST, Raipur, u/s 107 of the Chhattisgarh Goods and Services Tax Act, 2017. The applicant had asked for quashing of the appellate order, claiming that the statutory remedy of a second appeal before the GST Appellate Tribunal was inaccessible due to non-appointment of the President and Members of the Tribunal in Chhattisgarh.
The applicant in the hearing said that, although the GST Appellate Tribunal had been reported in the State and it is not operational till now, as appointments have not been made. Consequently, the taxpayers are not able to take the second appellate remedy given u/s 112 of the GST Act. The circumstance should approach the HC, it stated.
Earlier decision of a coordinate Bench in M/s Divya Steels v. State of Chhattisgarh and connected matters, where similar relief had been granted, has been observed by the court. On December 3, 2019, reference was made to a Central Board of Indirect Taxes and Customs (CBIC) order, which stated that the limitation period for filing a plea to the GST Appellate Tribunal shall start merely from the date on which the President or State President of the Tribunal enters office. The same explanation was for eliminating hardship caused by the non-constitution of the Tribunal in several States.
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The HC post, considering the submissions from both sides, asked that once the President or State President of the GST Appellate Tribunal assumes office, the applicant shall be provided a chance to submit a statutory appeal, including a prescribed pre-deposit. The court ordered that on filing of such an appeal, the competent authority will determine the same strictly as per the law on its own merits.
The court stated that u/s 112(9) of the GST Act, the statutory stay would stay in function till the appeal is decided finally by the Tribunal, thereby safeguarding the applicant from coercive recovery proceedings in this period.
HC warned that if the appeal is not submitted within the specified limitation period after the Tribunal becomes operational, then the State can start recovery proceedings for tax, interest, and penalty as per the law. Also, if the needed amount to file the appeal is not deposited within 30 days, then under the related circular dated July 11, 2024, the benefit of the order of the HC shall expire.
| Case Title | M/s JP Construction Co. vs Commissioner (Appeal) Central GST, Custom And Central Excise |
| Case No. | WPT No. 203 of 2025 |
| For Petitioner | Mr. Vikram Sharma, Advocate |
| For Respondent | Mr. Maneesh Sharma, Advocate |
| Chhattisgarh High Court | Read Order |
