Annai Infra Developers Limited Vs Commissioner of Customs and Central Tax (Telangana High Court)
The petitioner challenged the appellate order dated 26.08.2025, by which the appellate authority declined to interfere with the order-in-original imposing a penalty on the petitioner firm. During the hearing, it was informed that the Goods and Services Tax Appellate Tribunal had commenced functioning. Under Section 112 of the Central Goods and Services Tax Act, 2017, appeals lie before the Appellate Tribunal. The Tribunal, through an order dated 24.09.2025 issued under Rule 123 of the GST Appellate Tribunal (Procedure) Rules, 2025, classified various categories of orders and prescribed the corresponding time windows for filing appeals. Since the impugned order-in-appeal was passed on 26.08.2025, the applicable window for filing an appeal falls under serial No. 5, beginning on 01.02.2026 and ending on 30.06.2026.
It was further noted that the Finance Act, 2025, notified on 29.03.2025, amended Section 112 by inserting a proviso to sub-section (8). This proviso requires that in cases involving penalty without any tax demand, an appeal cannot be filed unless the appellant deposits 10% of the penalty amount, in addition to the amount required under the proviso to Section 107(6).
The Court observed that in similar situations, petitioners have been directed to approach the Appellate Tribunal within the prescribed time and, upon depositing 10% of the liability, have been protected from coercive action pending the Tribunal’s decision. In the present matter, although there is no tax demand, a penalty has been imposed, and therefore the amended proviso to Section 112 applies.
