High Court Allows Partial Tax Relief, Orders 20% Deposit and Appeal Filing Under Bihar GST Act Provisions

HC granted partial relief to petitioner challenging tax assessment due to non-constitution of Appellate Tribunal under Bihar GST Act. Court ordered 20% tax deposit for stay of recovery, mandating appeal filing once Tribunal is functional. Respondents must release bank account attachments upon compliance, with future proceedings contingent on appeal timelines.

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Issues involved:
The issues involved in the judgment are the non-constitution of the Appellate Tribunal under the Bihar Goods and Services Tax Act, hindering the petitioner's right to appeal and stay of recovery of tax amount.

Details of the Judgment:
The petitioner filed a writ petition seeking various reliefs, primarily the right to appeal against an order before the Appellate Tribunal under Section 112 of the Bihar Goods and Services Tax Act (B.G.S.T. Act). However, the non-constitution of the Tribunal deprived the petitioner of the statutory remedy under Sub-Section (8) and Sub-Section (9) of Section 112 of the B.G.S.T. Act, preventing the petitioner from availing the benefit of stay of recovery of the tax amount.

The respondent State authorities acknowledged the non-constitution of the Tribunal and issued a notification to address the issue. The notification stated that the period of limitation for appealing before the Tribunal shall start only after the President or State President of the Tribunal enters office post-constitution under Section 109 of the B.G.S.T. Act.

The Court, considering the circumstances, disposed of the writ petition by granting the petitioner the benefit of stay upon depositing a sum equal to 20 percent of the remaining tax amount in dispute. The Court emphasized that the petitioner should not be deprived of this benefit due to the non-constitution of the Tribunal by the respondents themselves. The Court also specified that the relief of stay is not open-ended and the petitioner must file an appeal under Section 112 of the B.G.S.T. Act once the Tribunal is constituted and functional.

If the petitioner chooses not to file an appeal within the specified period after the Tribunal's constitution, the respondent authorities are permitted to proceed further in the matter in accordance with the law. Additionally, if the order is complied with and the required amount is paid, any attachment of the petitioner's bank account shall be released.

With the above directions and observations, the writ petition was disposed of, providing the petitioner with the necessary relief and guidance regarding the appeal process once the Tribunal is established.

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