Orissa High Court Provides Relief in GST Appeal Jurisdiction Dispute

The Orissa High Court has delivered a significant ruling by setting aside a tax authority's decision that rejected a GST appeal from the Life Insurance Corporation of India (LIC) due to incorrect jurisdiction. This judgment ensures that justice is not denied on grounds of procedural or administrative errors.

LIC had contested an order issued in May 2025 by the Commissioner (Appeals) in Bhubaneswar, where their appeal was denied under Section 107 of the GST Act, claiming it was submitted to the wrong office. LIC argued that the authorities' action lacked proper application of mind, especially given LIC's multiple offices across different locations and its operations in Odisha.

During the proceedings, the department admitted that at the time of the appeal's denial, they lacked a system to transfer misplaced appeals to the correct office. However, they informed the court that a new advisory from the Directorate General of Systems, rolled out by July 2025, now permits the electronic transmission of appeals to the right jurisdiction.

The bench, comprising Chief Justice Harish Tandon and Justice M.S. Raman, emphasized that LIC should not lose its right to appeal due to a procedural error or administrative coordination issues. The Court quashed the rejection order and directed that the appeal be restored and sent to the appropriate appellate authority within 15 days, without delving into the actual tax merits of the case.