Writ Petition Rejected: High Court Directs Taxpayer to GSTAT; Holds Lack of Streamlined Filing Not a Ground to Bypass Statutory Remedy
1. The Core Dispute: Bypassing the Tribunal
The assessee approached the High Court through a Writ Petition to challenge a Show Cause Notice, an Order-in-Original (adjudication order), and an Order-in-Appeal (first appeal order).
Assessee’s Stand: They argued that the GST Appellate Tribunal (GSTAT) was not yet fully “streamlined” or functional. Because of this administrative delay and perceived legal complexities, they sought the High Court’s direct intervention.
Court’s Observation: The High Court questioned why the assessee had not utilized the alternative remedy of filing a second appeal under Section 112 of the CGST Act.
2. Legal Analysis: The Operational Status of GSTAT
The Court addressed the common grievance regarding the delay in setting up the GSTAT benches across India.
I. The June 2026 Deadline
The Court highlighted that the Ministry of Finance had already issued a Notification dated 17.09.2025.
The Notification: It provides a specific window for taxpayers to file appeals before the Appellate Tribunal.
The Deadline: For orders that were previously in “limbo” due to the non-constitution of the Tribunal, taxpayers now have until 30.06.2026 to file their appeals.
II. Technical vs. Jurisdictional Errors
The High Court reiterated a fundamental principle of constitutional law: Writ jurisdiction is discretionary.
Direct intervention is generally reserved for cases involving a total lack of jurisdiction, violation of natural justice, or the unconstitutionality of a law.
In this case, the first appellate authority had the legal power to pass the order. Since there was no “jurisdictional error,” the merits of the case (facts and law) should be argued before the Tribunal, not the Writ Court.
3. Final Verdict: Directions to the Tribunal
The High Court refused to bypass the statutory process merely because the Tribunal’s administrative setup was in its early stages.
Verdict: The writ petition was rejected.
Outcome: The assessee was directed to approach the GST Appellate Tribunal to raise all contentions.
Key Finding: The lack of a “streamlined” process does not dilute the statutory requirement to follow the established hierarchy of appeals.
Key Takeaways for Taxpayers
GSTAT is Now the Gateway: With the 2025 notifications, the “waiting period” for GSTAT is largely over. High Courts are now increasingly reluctant to entertain GST writs on merits if the Tribunal is available.
Limitation Period: Ensure you track the June 30, 2026 deadline. If you have “parked” a case due to the absence of a Tribunal, you must now proactively file your appeal.
Stay of Demand: Filing an appeal before the GSTAT usually involves a pre-deposit (typically an additional 20% of the disputed tax). Once filed, the remaining demand is stayed, providing significant relief from recovery proceedings.