Tax Dispute Resolution: Partial Deposit Mandated for Stay of Recovery Under Bihar GST Act Section 98

HC addressed a statutory remedy issue under Bihar GST Act where Tribunal was not constituted. The court directed petitioner to deposit 20% of disputed tax amount to obtain stay of recovery. The order mandated filing of appeal once Tribunal becomes functional, with clear conditions for potential release of bank account attachments related to tax demand.

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Issues involved: Non-constitution of the Tribunal affecting statutory remedy of appeal and stay of recovery under the Bihar Goods and Services Tax Act.

Judgment Summary:

The writ petition was filed seeking various reliefs, primarily to avail the statutory remedy of appeal against an impugned order before the Appellate Tribunal under the Bihar Goods and Services Tax Act. However, due to the non-constitution of the Tribunal, the petitioner was unable to access the statutory remedy and the benefit of stay of recovery of tax amounts. The respondent State authorities acknowledged this issue and issued a notification to address the difficulties arising from the non-constitution of the Tribunal.

The High Court, in its judgment, directed the petitioner to deposit a sum equal to 20 percent of the remaining tax amount in dispute to avail the statutory benefit of stay under the Act. The Court emphasized that the petitioner should not be deprived of this benefit due to the non-constitution of the Tribunal by the authorities themselves. The Court also noted that similar relief had been granted in a previous case.

Furthermore, the Court stated that the relief of stay, upon deposit of the statutory amount, cannot be open-ended. The petitioner was required to file an appeal under Section 112 of the Act once the Tribunal is constituted and functional. Failure to file the appeal within the specified period would allow the authorities to proceed further in accordance with the law.

Lastly, if the petitioner complied with the Court's order and paid the required amount, any attachment of the petitioner's bank account related to the tax demand would be released. The writ petition was disposed of with the mentioned directions and observations, providing the petitioner with necessary guidance on how to proceed regarding the appeal and stay of recovery.

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