2023 (8) TMI 1121 - HC - GST

Petitioner gets statutory stay benefits after depositing 20% disputed tax under Section 112(9) despite Tribunal delays

SAJ Food Products Pvt. Ltd. Versus The State of Bihar through the Secretary cum Commissioner, Department of State Taxes, New Secretariat, Bailey Road, Patna, The Secretary cum Commissioner, Department of State Taxes, New Secretariat, Bailey Road, Patna, The Additional Commissioner of State Taxes (Appeals), Central Division, Patna and The Deputy Commissioner of State Taxes, Special Circle Patna. (2017- 2018)

SAJ Food Products Pvt. Ltd. Versus The State of Bihar through the Secretary cum Commissioner, Department of State Taxes, New Secretariat, Bailey Road, ... Issues involved:The issues involved in the judgment are the quashing of orders, availability of statutory remedy of appeal, non-constitution of the Tribunal, benefit of stay of recovery of tax, and the liberty granted to the petitioner.Quashing of Orders:The petitioner sought writs to quash orders dated 18.07.2022 and 14.02.2020 passed by the respondents, which rejected the petitioner's appeal and demanded tax, interest, and penalty. The petitioner also requested a declaration regarding the exclusion of damage discount from the value of supply.Availability of Statutory Remedy of Appeal:The petitioner desired to appeal against the impugned order before the Appellate Tribunal under Section 112 of the Bihar Goods and Services Tax Act. However, due to the non-constitution of the Tribunal, the petitioner was deprived of this statutory remedy and the benefit of stay of recovery of tax.Non-constitution of the Tribunal:The petitioner was prevented from availing the benefit of stay of recovery of tax due to the non-constitution of the Tribunal, as acknowledged by the respondent State authorities. A notification was issued to address the period of limitation for appealing before the Tribunal.Benefit of Stay of Recovery of Tax:The Court granted the petitioner the benefit of stay under Section 112 of the Bihar Goods and Services Tax Act upon depositing a sum equal to 20 percent of the remaining tax amount in dispute. The recovery of the balance amount was stayed due to the non-constitution of the Tribunal.Liberty Granted to the Petitioner:The petitioner was given the liberty to file an appeal under Section 112 of the Act once the Tribunal is constituted and functional. Failure to file an appeal within the specified period would allow the respondent authorities to proceed further in accordance with the law.This judgment addressed the issues of quashing orders, availability of statutory remedy of appeal, non-constitution of the Tribunal, benefit of stay of recovery of tax, and the liberty granted to the petitioner, providing detailed insights into each aspect for a comprehensive understanding.