Nutan Ispat And Power Private Limited vs State Of Chhattisgarh

Naresh Kumar Chandravanshi, J

With the consent of learned counsel for the parties, the matter is heard finally.

This petition has been preferred by petitioner under Article 226 of the Constitution of India against the order dated 09.09.2020 (Annexure-P/1) passed by the Joint Commissioner (Appeal), State Tax, Raipur  (CG)  under  Section  107  of  the  Chhattisgarh  Goods  and Services Tax Act, 2017 (for short “the Act, 2017”) in Appeal Case No.

22/2020 (GST Penalty) and prayed for the following reliefs:-

“10.1 It is prayed that this Hon’ble Court may kindly be pleased to call for the entire records concerning the case of the petitioner from the possession of the Respondents for its kind perusal.

10.2 This Hon’ble Court may kindly be pleased to quash / set aside the impugned order dated 09.09.2020 passed by the respondent No.3 in Appeal Case No.22/2020 (GST Penalty) and consequently be pleased to set aside the liability imposed by the adjudicating authority on the petitioner.

10.3 Any other relief/ reliefs which this Hon’ble Court may think fit and proper in the facts and circumstances of the case, with cost of the petition may also please be granted to the petitioner.”

As per the Scheme of the Act, 2017, second appeal is provided before the Goods and Service Tax Appellate Tribunal. It is stated at the Bar that though the Tribunal has been notified in the State of Chhattisgarh, the president or the members have not yet been appointed and therefore, this Writ Petition seeking the relief(s) as stated above has been filed.

Learned counsel for the petitioner would submit that the matter in issue has already been decided by the Co-ordinate Bench of this Court in WPT No.40/2023 (M/s. Divya Steels Vs. State of CG and ors.) and other connected matters vide order dated 09.05.2024. In the said order, it has been observed that as soon as the President or State President enters office of the Goods and Service Tax Appellate Tribunal constituted under the Act 2017, the petitioner would file an appeal that may be decided in accordance with law on its own merits. He also submits that the Central Board of Indirect Taxes and Customs has issued an order on 03.12.2019 (Order No.09/2019-Central Tax) wherein it has been observed that for the purpose of filing an appeal or application as referred to in sub section (1) or sub section (3) of Section 112 of the Act 2017, as the case may be, the Appellate Tribunal and its Benches are yet to be constituted in many States as a result of which the said appeal or application could not be filed within time limit. He submits that for the removal of such difficulties, it has been clarified that for the purpose of calculating, the date on which the order sought to be appealed against is communicated to the person preferring the appeal in sub section (1) of Section 112, the start of three months period shall be considered to be date on which the President or State President, as the case may be, of the Appellate Tribunal after its constitution under Section 109, enters office. Learned counsel submits that after issuance of the said order, limitation has already been extended, further through notification dated 17.09.2025, the date of filing of appeal has also been notified, therefore, this petition may be disposed of and liberty may be granted to invoke the aforesaid provision to file an appeal along with statutory deposit.

Learned counsel for the respondents would not oppose the aforesaid prayer.

Having regard to the submission of learned counsel for the parties, 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, 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.

It is made clear that if the appeal is not filed within the prescribed period of limitation, the State would be at liberty to proceed against the petitioner for recovery of remaining tax, interest and penalty, if any, in accordance with law.

It is also made clear that if the amount required to file an appeal is not deposited by the petitioner within a period of 30 days from the date of this order, in the light of the Circular dated 11.07.2024, this order would lose its efficacy.

With the aforesaid observations/directions, this Petition stands disposed of.

Pending interlocutory application(s), if any, also stands disposed of. No order as to cost(s).