Tax Dispute Resolution: Partial Relief Granted with 20% Deposit Requirement and Conditional Appeal Rights

HC allowed partial relief in tax dispute, directing petitioner to deposit 20% of remaining tax amount for stay of proceedings. The court acknowledged absence of GST tribunal in Bihar and provided opportunity for appeal once tribunal is constituted. Petitioner granted conditional relief with mandate to file appeal within prescribed statutory period.

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Issues involved: The issues involved in the case are the quashing of ex-parte orders under the Central Goods and Services Tax Act and Bihar Goods and Services Tax Act, denial of statutory remedy due to non-constitution of the Tribunal, and the benefit of input tax credit based on GSTR-2A discrepancies.

Quashing of Orders: The petitioner sought writs to quash ex-parte orders passed under the Central Goods and Services Tax Act and Bihar Goods and Services Tax Act, as well as appellate orders rejecting the petitioner's appeal without proper consideration of facts and law. The petitioner also requested to restrain the respondents from taking coercive action for recovery, emphasizing the absence of a GST tribunal in Bihar as a hindrance to statutory remedies.

Denial of Statutory Remedy: Due to the non-constitution of the Tribunal, the petitioner was deprived of the statutory remedy of appeal under Section 112 of the Bihar Goods and Services Tax Act. Acknowledging this issue, the respondent State authorities issued a notification to address the period of limitation for filing appeals before the Tribunal post its constitution, ensuring the petitioner's right to appeal once the Tribunal is functional.

Benefit of Input Tax Credit: The petitioner argued that the absence of auto-populated GSTR-2A should not deprive them of the benefit of input tax credit. The Court, considering the equities, directed the petitioner to deposit a sum equal to 20 percent of the remaining tax amount for the benefit of stay under Section 112 of the Bihar Goods and Services Tax Act. The Court also mandated the petitioner to file an appeal once the Tribunal is constituted to facilitate the consideration of the appeal.

Conclusion: The Court disposed of the writ petition by granting the petitioner the benefit of stay upon deposit, ensuring the petitioner's right to appeal once the Tribunal is functional. The petitioner was directed to file an appeal as per statutory requirements post the Tribunal's constitution, with the liberty for authorities to proceed if the petitioner chooses not to avail the appeal remedy within the specified period.

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