Non-Availability Of GSTAT Cannot Be Used To Bypass Mandatory Pre-Deposit U/S 112(8) CGST Act: Orissa High Court

Section 112(8) of the Central Goods and Services Tax (CGST) Act, 2017, outlines the mandatory pre-deposit conditions that an appellant must meet to file an appeal with the Goods and Services Tax Appellate Tribunal (GSTAT).

Chief Justice Harish Tandon and Justice Murahari Sri Raman stated that the Writ Court can be approached assailing an order for which the forum of appeal is provided and the same is entertainable in the event the forum is not made functional or constituted as the person cannot be rendered remediless. Equally it is true that if conditions are attached to filing an appeal before such forum, the Writ Court shall ensure strict compliance thereof as a person cannot steal a march taking a shelter that there is no inhibition in the writ Court in entertaining the writ petition and passing an order taking departure from the said statutory provision.

In the case at hand, the assessee/petitioner has challenged the order passed by the CT & GST Officer for the tax periods from July 2017 to March 2018 under Section 74 of the Central Goods and Services Tax Act, 2017, which was affirmed in an appeal by the Appellate Authority.

The counsel for the assessee argued that, although the remedy by way of an appeal is provided under Section 112 of the GST Act under the Goods and Services Tax Appellate Tribunal (GSTAT) against the order in appeal, such remedy is not available as the GSTAT has not been constituted and made functional and, therefore, an aggrieved person cannot be rendered remediless.

The department supported the aforesaid stand of the assessee so far as it relates to non-constitution and non-functional of the GSTAT, but submitted that it does not absolve the assessee from complying with the mandate envisaged under sub-section (8) of Section 112 of the GST Act.

The bench noted that the Department of Revenue, Ministry of Finance, issued a notification being S.O. No.4220(E) dated 17th September, 2025, providing an opportunity to an aggrieved person to file an appeal in exercise of the powers conferred by sub-section (1) of Section 112 of the Central Goods and Services Tax Act, 2017.

The bench stated that since the forum has already been provided in the statute, which is now made functional and the period for filing the appeal has been extended in a fragmented manner, it would not be proper for the Writ Court to keep such writ petitions pending as the dispute raised by the petitioner in the instant writ petition can be adjudicated by the said forum….

In view of the above, the bench directed the assessee to deposit the amount as required under sub-section (8) of Section 112 of the GST Act, before the GSTAT to file the appeal.

Case Title: Abhijit Nayak v. The Commissioner of (CT & GST), Odisha and others

Case Number: W.P.(C) No.32643 of 2025

Counsel for Petitioner/Assessee: Prabodha Chandra Nayak

Counsel for Respondent/Department: Sunil Mishra, Standing Counsel, along with Sourav Tibrewal, Additional Standing Counsel for the CT & GST Department