Tax Dispute Resolution: Petitioner Must Deposit 20% of Disputed Amount, Tribunal Constitution Mandated, Appeal Rights Preserved

HC addressed a tax dispute involving non-constitution of Tribunal under Bihar GST Act. The court directed petitioner to deposit 20% of disputed tax amount and allowed statutory appeal benefits once Tribunal is constituted. Stay of recovery granted subject to future appeal filing within prescribed period. Respondent authorities must release bank account attachments upon compliance.

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Issues:
The judgment addresses the issue of non-constitution of the Tribunal under Section 112 of the Bihar Goods and Services Tax Act, preventing the petitioner from availing statutory remedies and benefits such as appeal and stay of recovery.

Details of Judgment:

1. The petitioner filed a writ petition under Article 226 of the Constitution of India seeking to approach the Tribunal for separate assessments made by the Assessing Officer for three periods: 2018-19, 2019-20, and 1st March, 2019 to 31st March, 2019.

2. The petitioner aims to avail the statutory remedy of appeal against the impugned orders before the Appellate Tribunal under Section 112 of the Bihar Goods and Services Tax Act.

3. Due to the non-constitution of the Tribunal, the petitioner is deprived of its statutory remedy under Sub-Section (8) and Sub-Section (9) of Section 112 of the Act.

4. Consequently, the petitioner is unable to benefit from the stay of recovery of the balance tax amount as per Section 112 (8) and (9) of the Act upon depositing the required amounts.

5. The respondent State authorities acknowledged the non-constitution of the Tribunal and issued a notification for removal of difficulties, stating that the period of limitation for appealing before the Tribunal shall start only after the Tribunal is constituted.

6. The Court orders that the petitioner, upon depositing 20 percent of the remaining tax amount in dispute, must be granted the statutory benefit of stay under Section 112 (9) of the Act. The petitioner is required to file an appeal once the Tribunal is constituted for consideration.

7. The relief of stay is not open-ended, and the petitioner must file the appeal within the specified period after the Tribunal's constitution. Failure to do so allows the respondent authorities to proceed further in accordance with the law.

8. If the petitioner complies with the order and pays the required amount, any bank account attachment due to the tax demand shall be released.

9. For the stay of recovery, 20% of the further demands for each assessment period must be satisfied.

10. The writ petition is disposed of with the mentioned directions and observations, providing the petitioner with the necessary relief and obligations regarding the appeal process and stay of recovery.

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