2024 (1) TMI 1243 - HC - GST

Maintainability of petition - seeking to avail statutory remedy of appeal against the impugned order before the Appellate Tribunal under Section 112 of the Bihar Goods and Services Tax Act - HELD THAT - Due to non-constitution of the Tribunal, the petitioner is deprived of his statutory remedy under Sub-Section (8) and Sub-Section (9) of Section 112 of the B.G.S.T. Act - the 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. 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 - Petition disposed off.

Summary

Issues involved:
The writ petition filed under Article 226 seeking reliefs due to non-constitution of the Tribunal under the Bihar Goods and Services Tax Act.

Judgment Details:
1. The petitioner sought relief of stay of recovery of tax balance amount due to non-constitution of the Tribunal under Section 112 of the B.G.S.T. Act.
2. The respondent State authorities issued a notification acknowledging the non-constitution of the Tribunal and provided for the period of limitation for filing an appeal.
3. The Court ordered that the petitioner must deposit 20 percent of the remaining tax amount to avail the benefit of stay under Section 112(9) of the B.G.S.T. Act.
4. The Court emphasized that the relief of stay is not open-ended and the petitioner must file an appeal once the Tribunal is constituted to facilitate consideration of the appeal.
5. If the petitioner does not file an appeal within the specified period after the Tribunal's constitution, the respondent authorities are permitted to proceed further in accordance with the law.
6. Upon compliance with the Court's order, including payment of 20 percent of the tax amount, any bank account attachment related to the tax demand shall be released.
7. If the petitioner has paid more than 20 percent of the demand, there will be a stay of recovery until the Tribunal is constituted, and if the appeal is filed within the stipulated period, there will be a stay until the appeal's disposal.
8. The writ petition is disposed of with the mentioned directions and observations.