Pre-deposit toward interim relief satisfies appellate tribunal entry requirements without further payment.

The petitioners challenged an appellate order dated April 11, 2023, passed under Section 107 of the WBGST/CGST Act, 2017, which stemmed from an original adjudication order under Section 74 for the tax period of January 2018 to February 2018.

On September 20, 2023, the High Court entertained the writ petition due to the non-availability of the GSTAT (GST Appellate Tribunal) and granted a conditional stay on coercive actions, provided the petitioners deposited 20% of the disputed tax.

The petitioners complied with this condition, albeit with a marginal delay, and the interim order remained in force while the matter was pending.

Subsequently, the State GSTAT was constituted and began accepting appeals.

1. Whether the writ petition should be entertained on merits now that the GST Appellate Tribunal is functional.

2. Whether the petitioners are entitled to specific relief regarding the pre-deposit requirement and protection from coercive action if they are relegated to the Tribunal.

The Court applied Section 107 and Section 112 of the WBGST/CGST Act, 2017, regarding the hierarchy of appeals.

It took judicial notice of the notification dated September 17, 2025, which extended the limitation period for filing appeals before the Appellate Tribunal for orders passed prior to April 1, 2026, until June 30, 2026.

The Court also applied the principle of judicial discretion in GST matters where the alternative remedy (Tribunal) was previously unavailable but has since become functional.

The Court reasoned that since the GST Appellate Tribunal had been properly constituted and was actively accepting filings, it would be "prudent" for the petitioner to pursue the statutory remedy provided under the Act rather than continuing with the writ petition.

The Court observed that the petitioners had already demonstrated bona fides by depositing 20% of the tax in dispute as per the Court's previous interim direction.

Therefore, to balance the transition from the High Court to the Tribunal, the Court directed that this 20% deposit should be treated as sufficient compliance, exempting the petitioners from any further pre-deposit requirements that might otherwise be mandatory for filing a Tribunal appeal under the Act.

It held that if the appeal is filed within the extended limitation period (by June 30, 2026, as per the notification), the Tribunal must hear the matter on merits without insisting on any further pre-deposit.

The Court further ordered that no coercive action shall be taken against the petitioners until the expiry of the period mentioned in the September 17, 2025 notification, pending the filing of the appeal.