Conditional GST stay for unresolved appellate forum: deposit triggers protection, but appeal must be filed once the Tribunal functions.

Where the GST Appellate Tribunal had not yet been constituted, the assessee could not be denied appellate protection or the statutory stay mechanism solely because the forum was unavailable. Reading Section 112 of the Bihar GST Act with the removal of difficulty notification under Section 172, the Court held that deposit of 20 per cent of the remaining disputed tax within four weeks, in addition to the amount already deposited under Section 107(6), would trigger the stay under Section 112(9) and keep balance recovery in abeyance. The relief was conditional: the assessee must file the appeal before the Tribunal once it becomes functional, failing which the authorities may proceed in accordance with law.

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Issues: Whether, in view of the non-constitution of the GST Appellate Tribunal, the assessee was entitled to protection against recovery and to the statutory benefit of stay upon depositing the prescribed amount, with a corresponding obligation to file the appeal once the Tribunal becomes functional.

Analysis: The writ petition was founded on the inability of the assessee to pursue the appellate remedy before the Tribunal because the Tribunal had not been constituted. The statutory scheme under Section 112 of the Bihar Goods and Services Tax Act, 2017 was read with the removal of difficulty notification issued under Section 172 of the Bihar Goods and Services Tax Act, 2017. The Court balanced the equities by recognizing that the assessee could not be deprived of the benefit of stay merely because the Tribunal was not yet functional, while also ensuring that the relief would not operate indefinitely. It was held that if the assessee deposits 20 per cent of the remaining tax in dispute within four weeks, in addition to the amount already deposited under Section 107(6), the statutory stay under Section 112(9) would follow and recovery of the balance would remain stayed. The assessee would, however, be required to file the appeal before the Tribunal once it is constituted and made functional, and if no appeal is filed within the period then available, the authorities would be free to proceed in accordance with law.

Conclusion: The assessee was held entitled to conditional protection from recovery and to the statutory stay benefit on compliance with the directed deposit, with the obligation to pursue the appellate remedy after constitution of the Tribunal.

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