Maa Kali Industries vs State Of Chhattisgarh on 17 April, 2026

                                                                    1




           Digitally signed

                                                                                 2026:CGHC:17549
           by SIDDHANT
SIDDHANT TAMRAKAR
TAMRAKAR Date:
         2026.04.17
           13:54:03
           +0530




                                                                                                         NAFR

                                            HIGH COURT OF CHHATTISGARH AT BILASPUR

                                                            WPT No. 56 of 2026
                                 Maa Kali Industries Proprietorship Firm Through Its Proprietor Manoj Kumar
                                   Dammani, Aged About 39 Years, S/o. Rajkumar Dammani, 189/190, Infront Of
                                   Sbi Bank, Ramsagar Para, Raipur (C.G.)
                                                                                                   ... Petitioner


                                                                   versus


                                1. State Of Chhattisgarh Through Its Secretary, Department Fo Commercial Tax
                                   Gst, North Block Sector 19, Atal Nagar, Raipur (C.G.)
                                2. The Additional Commissioner (Appeal) State Tax, Chhattisgarh (Gst),
                                   Commercial Tax Gst Bhawan, North Block, Sector-19, Atal Nagar, Nava Raipur
                                   (C.G.)
                                3. The Deputy Commissioner State Tax, Raipur Circle I, Raipur (C.G.) 492001
                                4. Indian Bank Through Its Branch Manager Raipur Branch,guru Nanak Chowk
                                   Raipur, District- Raipur (C.G.) 492001
                                                                                           ... Respondent(s)

                              For Petitioner            : Mr. Vikram Sharma, Advocate
                              For State                 : Ms. Anuradha Jain, Dy. Government Advocate

                                                Hon'ble Shri Justice Rakesh Mohan Pandey

                                                              Order on Board
                              17/04/2026


1. Heard on admission.

2. Admit.

3. With the consent of the parties, matter is heard finally.

4. This Petition has been filed against the order dated 04.11.2022 passed by

Respondent No.3 and order dated 28.03.2024 passed by respondent No. 2 under

Section 107(11) of the Chhattisgarh Goods & Services Tax Act, 2017 and

attachment notice dated 16.01.2026.

5. At the outset, learned Counsel for the petitioner submits that Ministry of

Finance, Department of Revenue, Central Board of Indirect Taxes and Customs,

GST Policy Wing has already issued a circular i.e. Circular No.224/18/2024-

GST dated 11.07.2024 under the subject heading "Guidelines for recovery of

outstanding dues, in cases wherein first appeal has been disposed of, till

Appellate Tribunal comes into operation" and laid down the policy where the

Appeal against such order of the appellate authority could not be filed under

Section 112 of the Central Goods and Services Tax Act, 2017 (for short 'the

CGST Act') due to non- constitution of Appellate Tribunal (for short 'the

Tribunal'). He further submits that as prescribed at para-4 of the said circular,

"in order to facilitate the taxpayers to make the payment of the amount of pre-

deposit as per sub-section (8) of Section 112 of the CGST 3 Act and to avail the

benefit of stay from recovery of the remaining amount of confirmed demand as

per sub-section (9) of section 112 of the CGST Act, it is clarified that in cases

where the taxpayer decides to file an Appeal against the order of appellate

authority and wants make the payment of the amount of pre-deposit as per sub-

section (8) of Section 112 of the CGST Act, he can make the payment of an

amount equal to the amount of pre-deposit by navigating to Services >>

Ledgers >> Payment towards demand from his dashboard. The taxpayer would

be navigated to Electronic Liability Register (ELL) Part-II in which he can

select the order, out of the outstanding demand orders, against which payment

is intended to be made. The amount so paid would be mapped against the

selected order and demand amount would be reduced in the balance liability in

the aforesaid register. The said amount deposited by the taxpayer will be

adjusted against the amount of pre-deposit required to be deposited at the time

of filing appeal before the Appellate Tribunal."

6. He further submits that earlier also, prior to the amendment of the CGST Act,

by Act 8 of 2023, which came into force with effect from 01.08.2023, a circular

has been issued on 03.12.2019 whereby, limitation has already been extended.

As per circular dated 11.07.2024, it is now mandatory that the tax payer also

needs to file an undertaking/declaration with the jurisdictional proper officer

that he will file Appeal against the said order of the appellate authority before

the Tribunal, as and when it comes into operation and referred to relevant paras

i.e. paras-5 & 6, which read as under:-

"5. The taxpayer also needs to file an undertaking/declaration with the jurisdictional proper officer that he will file appeal against the order of the appellate authority before the Appellate Tribunal, as and when it comes into operation, within the timelines mentioned in section 112 of the CGST Act read with Central Goods and Services Tax (Ninth Removal of Difficulties) Order, 2019 dated 03.12.2019. On providing the said undertaking and on payment of an amount equal to the amount of pre- deposit as per the procedure mentioned in para 4 above, the recovery of the remaining amount of confirmed demand as per the order of the appellate authority will stand stayed as per provisions of sub-section (9) of section 112 of CGST Act. 6. In case, the taxpayer does not make the payment of the amount equal to amount of pre-

deposit or does not provide the undertaking/ declaration to the proper officer, then it will be presumed that taxpayer is not willing to file appeal against the order of the appellate authority and in such cases, recovery proceedings can be initiated as per the provisions of law. Similarly, when the Tribunal comes into operation, if the taxpayer does not file appeal within the timelines specified in Section 112 of the CGST Act read with Central Goods and Services Tax (Ninth Removal of Difficulties) Order, 2019 dated 03.12.2019, the remaining amount of the demand will be recovered as per the provisions of law."

7. He further submits that the Government of India, Ministry of Finance,

Department of Revenue, vide Notification No. S.O. 4220(E) dated 17th

September, 2025, issued in exercise of the powers conferred by sub-section (1)

of section 112 of the Central Goods and Services Tax Act, 2017, has notified

30th June, 2026 as the date up to which an appeal may be filed before the

Goods and Services Tax Appellate Tribunal in respect of all cases where the

order sought to be appealed against has been communicated to the person

preferring the appeal before 1st April, 2026. In respect of orders communicated

on or after 1st April, 2026, which is also adopted by the State Government vide

notification dated 06.03.2026, the appeal shall be filed before the Appellate

Tribunal within three months from the date of communication of such order.

8. He lastly submits that this petition may be disposed of granting liberty in favour

of the petitioner to avail the alternative recovery by filing an

undertaking/declaration in terms of circular dated 11.07.2024 issued by the

Central Board of Indirect Taxes and Customs, GST Policy Wing & circular

dated 17.09.2025.

9. Learned State Counsel does not oppose the aforesaid prayer.

10.Having regard to the submissions made by learned Counsel for the parties and

particularly considering that there are explicit guidelines for recovery of

outstanding dues in cases wherein, first appeal has been disposed of till the

Appellate Tribunal comes into operation, this Courts is of the considered

opinion that nothing remains for adjudication in this Writ Petition.

11.Accordingly, liberty is reserved in favour of the Petitioner to comply with the

necessary conditions of circular No.224/18/2024- GST of the Central Board of

Indirect Taxes and Customs dated 11.07.2024 by filing an

undertaking/declaration with the jurisdictional proper officer that he would file

an Appeal against the order under challenge before the Appellate Tribunal as

and when it comes into operation within the time lines mentioned in Section

112 of the CGST Act notification dated 17.09.2025 and shall also pay pre-

deposit as per sub-section (8) of Section 112 of CGST Act within a period of 15

days from the date of receipt of copy of this order, if not already deposited. It is

ordered that as per the said circular, if the Petitioner files such undertaking with

regard to the pre-statutory deposit, the recovery of the remaining amount of

order dated 04.11.2022 and 28.03.2024 shall remain stayed as per sub-section

(9) of Section 112 of the CGST Act.

12. It is made clear that if the said amount is not deposited within the

aforementioned period, this order shall lose its efficacy.

13.With the aforesaid direction/observation, the instant Writ Petition stands

disposed of.

Sd/-

Rakesh Mohan Pandey JUDGE

$iddhant