Orissa High Court Directs Appeal Filing Before GSTAT After Tribunal Becomes Functional

Introduction

The Orissa High Court recently disposed of a writ petition filed by Cordant Engineerings India Private Ltd challenging tax assessment orders under the goods and services tax framework. The Court's decision was primarily influenced by the subsequent constitution and operationalization of the Goods and Services Tax Appellate Tribunal (GSTAT), which made available the statutory appellate remedy that was previously absent. This judgment underscores the principle that constitutional courts will not ordinarily entertain matters where adequate alternative remedies exist under statutory provisions.

Factual Matrix of the Case

Cordant Engineerings India Private Ltd approached the Orissa High Court through a writ petition to challenge a specific order issued on 20 January 2022. This order was passed by the CT and GST Officer stationed at Bhubaneswar-III Circle concerning the assessment period spanning April 2019 through March 2020. The assessment was conducted under the provisions of Section 73 of both the Central Goods and Services Tax Act, 2017 and the Odisha Goods and Services Tax Act, 2017.

The assessee had exhausted the first level of appeal, wherein the Appellate Authority upheld the original assessment order on 5 September 2023. Following this confirmation, the assessee sought judicial intervention through the constitutional remedy of writ jurisdiction.

Primary Contention Raised by the Assessee

The petitioner's counsel advanced a fundamental argument centered on the unavailability of statutory appellate mechanisms. The core submission was that although Section 112 of the GST Act clearly provides for a second appeal before the Goods and Services Tax Appellate Tribunal, such remedy remained merely theoretical rather than practical.

The specific grievance highlighted that despite the legislative framework providing for appellate recourse, the GSTAT had neither been constituted nor made operational at the material time. Consequently, the assessee argued that the absence of a functioning tribunal left aggrieved parties without any effective remedy, thereby justifying direct intervention by the High Court under Article 226 of the Constitution of India.

This situation, according to the petitioner, created a legal vacuum wherein an assessee could neither access the statutory appellate forum nor be denied relief on grounds that such forum existed in statute books.

Response from the Revenue Department

The Standing Counsel representing the CT and GST Department acknowledged the factual position regarding the non-constitution and non-functionality of the GSTAT at the relevant point in time. This admission corroborated the petitioner's assertion about the tribunal's absence.

However, the Revenue took a firm stance on procedural compliance requirements. The Department's position was unequivocal: the mere fact that the tribunal was not operational did not absolve or excuse any appellant from complying with the mandatory pre-deposit requirements prescribed under Section 112(8) of the GST Act.

The statutory mandate under this provision requires that before filing any appeal, the appellant must fulfill two conditions:

• Complete payment of such portion of tax, interest, fine, fee, and penalty as admitted by the appellant from the disputed order
• Deposit of an additional amount equivalent to ten percent of the remaining disputed tax amount, subject to an upper ceiling of twenty crore rupees

The Department maintained that these conditions precedent must be satisfied regardless of when the tribunal becomes functional.

Subsequent Regulatory Developments

The Court took judicial notice of significant developments that occurred after the filing of the writ petition. The Department of Revenue, functioning under the Ministry of Finance, issued a crucial notification bearing reference S.O. No.4220(E) dated 17 September 2025.

Notification Regarding Extended Timeline

This notification was issued in exercise of powers vested under Section 112(1) of the Central Goods and Services Tax Act, 2017, following recommendations of the GST Council. The notification established a bifurcated timeline for filing appeals before the GSTAT:

For Orders Communicated Before 1 April 2026:
Appeals can be filed up to 30 June 2026, irrespective of when the original order was communicated, provided it was before 1 April 2026.

For Orders Communicated On or After 1 April 2026:
Appeals must be filed within the standard period of three months from the date on which the order is communicated to the appellant.

This liberal timeline aimed to accommodate the backlog of cases that accumulated during the period when the tribunal was non-functional.

User Advisory for E-Filing Portal

To facilitate seamless filing of appeals before the newly functional tribunal, the authorities issued comprehensive guidance through a "User Advisory for the GSTAT E-Filing Portal." This advisory provided detailed instructions and, importantly, established a staggered filing schedule.

Staggered Appeal Filing Schedule

The staggered approach was designed to prevent system overload and ensure orderly processing of appeals. The schedule was based on the Application Reference Number (ARN) or Challan Reference Number (CRN) of the first appeal filed in Form APL-01 or APL-03, or the date of notice issued in Form RVN-01 by the Revisional Authority.

Detailed Filing Windows

First Window (Commencing 24 September 2025, Ending 31 October 2025):
Applicable for cases where the first appeal in Form GST APL-01 or GST APL-03, or notice in Form GST RVN-01 was filed or issued on the common portal on or before 31 January 2022. Such appeals could be filed between 24 September 2025 and 31 October 2025, with flexibility to file any time thereafter until 30 June 2026.

Second Window (Commencing 1 November 2025, Ending 30 November 2025):
This window covered orders where the first appeal or revisional notice was filed or issued on or after 1 February 2022 but on or before 28 February 2023. The filing period commenced on 1 November 2025 and concluded on 30 November 2025, again with extended flexibility until 30 June 2026.