2024 (2) TMI 898 - HC - GST

Maintainability of petition - non-availability of statutory remedy of appeal - non-constitution of the Tribunal - petitioner is also prevented from availing the benefit of stay of recovery of balance amount of tax in terms of Section 112 (8) and (9) of the B.G.S.T Act upon deposit of the amounts as contemplated under Sub-section (8) of Section 112 - HELD THAT - The respondent State authorities have acknowledged the fact of non-constitution of the Tribunal and come out with a notification bearing Order No. 09/2019-State Tax, S. O. 399, dated 11.12.2019 for removal of difficulties, in exercise of powers under Section 172 of the B.G.S.T Act, which provides that period of limitation for the purpose of preferring an appeal before the Tribunal under Section 112 shall start only after the date on which the President, or the State President, as the case may be, of the Tribunal after its constitution under Section 109 of the B.G.S.T Act, enters office. Subject to deposit of a sum equal to 20 percent of the remaining amount of tax in dispute, if not already deposited, in addition to the amount deposited earlier under Sub-Section (6) of Section 107 of the B.G.S.T. Act, the petitioner must be extended the statutory benefit of stay under Sub-Section (9) of Section 112 of the B.G.S.T. Act. The petitioner cannot be deprived of the benefit, due to non- constitution of the Tribunal by the respondents themselves. The recovery of balance amount, and any steps that may have been taken in this regard will thus be deemed to be stayed - Petition disposed off.

Summary

Issues involved:
The petitioner seeks relief for non-constitution of the Tribunal under Section 112 of the Bihar Goods and Services Tax Act.

Details of the judgment:
The petitioner desires to appeal against the impugned order before the Appellate Tribunal but is unable to do so due to the non-constitution of the Tribunal. The petitioner is also unable to benefit from the stay of recovery of tax balance as provided under the B.G.S.T. Act. The respondent State authorities have acknowledged the non-constitution of the Tribunal and issued a notification stating that the period of limitation for filing an appeal before the Tribunal shall start after the Tribunal is constituted. The Court orders that the petitioner must deposit 20 percent of the remaining tax amount in dispute to avail the benefit of stay under Section 112 of the B.G.S.T. Act. The petitioner is required to file an appeal once the Tribunal is constituted and functional. If the petitioner does not file an appeal within the specified period, the authorities can proceed further in accordance with the law. Upon compliance with the court's order, any bank account attachment related to the tax demand shall be released. The writ petition is disposed of with these directions and observations.