Maa Kali Industries Vs State of Chhattisgarh (Chhattisgarh High Court)
The Chhattisgarh High Court disposed of a writ petition challenging recovery proceedings initiated under the Chhattisgarh Goods and Services Tax Act, 2017, including attachment notice and appellate orders. The petitioner contended that the Central Board of Indirect Taxes and Customs (CBIC) had issued Circular No. 224/18/2024-GST dated 11.07.2024, which provides guidelines for recovery of outstanding dues in cases where the first appeal has been disposed of but the Appellate Tribunal is not yet operational. The circular allows taxpayers intending to file an appeal before the Tribunal to deposit the prescribed pre-deposit amount and submit an undertaking declaring their intent to file such appeal once the Tribunal becomes functional. Upon compliance, recovery of the remaining demand is to be stayed under Section 112(9) of the CGST Act.
The petitioner further referred to earlier circulars and statutory provisions extending timelines, as well as a notification dated 17.09.2025, which prescribed timelines for filing appeals before the Tribunal. It was submitted that the petitioner should be permitted to avail the benefit of these guidelines by complying with the prescribed conditions. The State did not oppose this submission.
The High Court observed that the issue was governed by the existing CBIC guidelines, which clearly set out the procedure for obtaining a stay on recovery pending the constitution of the Appellate Tribunal. It held that no further adjudication was required in light of these provisions. Accordingly, the Court granted liberty to the petitioner to comply with the circular by filing an undertaking with the jurisdictional officer and depositing the required pre-deposit amount within 15 days. Upon such compliance, recovery of the remaining demand would remain stayed in accordance with Section 112(9) of the CGST Act.
