Key Tax Appeal Rights Preserved: 20% Deposit Required, Tribunal Pathway Opened for Taxpayer Under Bihar GST Act

The HC addressed a tax dispute involving inability to appeal due to non-constitution of the Tribunal under the Bihar GST Act. The court directed the petitioner to deposit 20% of disputed tax, granted temporary stay of recovery, and provided opportunity to file appeal once Tribunal becomes functional. The order balanced procedural requirements with taxpayer's statutory remedies, allowing potential future appeal while ensuring partial tax compliance.

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Issues involved: Non-constitution of the Tribunal affecting statutory remedy of appeal and stay of recovery under Section 112 of the Bihar Goods and Services Tax Act.

Summary:
The writ petition was filed seeking various reliefs under Article 226 of the Constitution of India. The petitioner aimed to avail the statutory remedy of 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 unable to access the statutory remedy provided under Sub-Sections (8) and (9) of Section 112. Consequently, the petitioner was also unable to benefit from the stay of recovery of the balance amount of tax as per the provisions of Section 112 (8) and (9) of the Act.

The respondent State authorities acknowledged the non-constitution of the Tribunal and issued a notification to address this issue. The notification stated that the period of limitation for filing an appeal before the Tribunal under Section 112 would commence only after the President or State President of the Tribunal enters office following its constitution under Section 109 of the Act.

In light of the circumstances, the Court disposed of the writ petition by issuing the following directions:
1. The petitioner must deposit a sum equal to 20 percent of the remaining amount of tax in dispute, if not already deposited, to be granted the statutory benefit of stay under Sub-Section (9) of Section 112. This stay would prevent the recovery of the balance amount until the Tribunal is constituted.
2. The petitioner is required to file an appeal under Section 112 of the Act once the Tribunal is functional, and the President or State President assumes office. Failure to file the appeal within the specified period would allow the respondent authorities to proceed further in accordance with the law.
3. If the prescribed conditions are met, any attachment of the petitioner's bank account due to the tax demand shall be released.
4. The amount already deposited will be considered towards the 20 percent payment required.
5. The writ petition was disposed of with the mentioned directions, observations, and liberty granted to the parties involved.

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