Order date: 14 Aug 2025 
Parties: M/s Archita Soap and Chemical LLP v. Joint Commissioner (Appeals), State Tax, Durg & Anr.

Facts -

• The petitioner challenged the order dated 09.09.2024 passed under Section 107(11) of the CGST/Chhattisgarh GST Act, as well as rejection of a rectification application under Section 161. 
• Since the GST Appellate Tribunal has not yet been constituted, the petitioner relied on CBIC Circular No. 224/18/2024-GST dated 11.07.2024, which provides guidelines for recovery and stay of demand until the Tribunal becomes functional, subject to pre-deposit and filing of an undertaking.

Issue -

• Whether recovery proceedings can continue against a taxpayer when the appeal to the Appellate Tribunal cannot be filed due to non-constitution of the Tribunal, and the taxpayer seeks protection under CBIC Circular 224/18/2024-GST?

Order -

• The single bench of the Hon’ble high court held that in light of the explicit guidelines in Circular 224/18/2024-GST, the petitioner is entitled to protection. 
• Liberty was reserved for the petitioner to file the required undertaking/declaration with the proper officer and deposit the mandatory pre-deposit under Section 112(8) of the CGST Act within 15 days. Upon compliance, recovery of the balance demand shall remain stayed under Section 112(9). 
• The petition was disposed of accordingly, with a clarification that failure to deposit within time would render the order ineffective.