Case Title: M/s. Saroj Leathers (India) Private Limited v. The Deputy Commissioner of GST & Central Excise
Court: High Court of Judicature at Madras
Petition No.: WP No.31883 of 2022
Category of Dispute: Penalty & Interest under GST – Appeal Remedy Pending
Date of Judgment: 21 April 2025
Relevant Sections: Section 112 of the CGST Act, 2017
🧾 Facts of the Case (Para 1–2)
The petitioner, M/s. Saroj Leathers (India) Pvt. Ltd., challenged the appellate order dated 13.07.2022 which upheld the Order-in-Original dated 21.09.2021 issued by the Deputy Commissioner of GST & Central Excise. The original order imposed interest and penalty. The petitioner approached the High Court due to the non-constitution/non-functioning of the GST Appellate Tribunal, thereby lacking an alternate appellate remedy.
❓ Question(s) in Consideration (Para 2–3)
Whether a writ petition under Article 226 is maintainable to challenge an appellate order passed under GST laws, in absence of a functioning GST Appellate Tribunal?
👨⚖️ Observations of the Court (Para 3–4)
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The Court noted that the appellate remedy under Section 112 of the CGST Act exists but remains ineffective due to the Tribunal being non-functional.
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The petitioner expressed willingness to deposit 10% of the disputed tax, as is required for an appeal before the Tribunal.
🏛️ Judgment of the Court (Para 4–5)
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The Court granted interim stay on recovery of the balance tax, interest, and penalty, subject to the petitioner depositing 10% of the balance tax within 4 weeks.
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The writ petition was disposed of with liberty to the petitioner to file appeal once the Tribunal becomes operational.
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No costs were awarded.
📌 Between Fine Lines
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GST Tribunal non-functionality continues to push taxpayers to seek writ remedy.
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Courts are granting conditional reliefs to balance fairness and procedural limitations.
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Deposit of 10% pre-condition under Section 112 was made applicable even in writ.
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No decision on merits—only procedural protection granted.
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Taxpayers can challenge orders later before Tribunal without prejudice.
📚 Summary of Referred Cases
(No specific case laws were cited or relied upon in the judgment.)
