Tax Recovery Stayed Due to Tribunal Non-constitution; Petitioner to Deposit Sum and Appeal Once Tribunal is Formed.

The HC disposed of the writ petition, directing that the petitioner be granted a stay on tax recovery upon depositing a specified sum, due to the non-constitution of the Tribunal under the B.G.S.T. Act. The petitioner must file an appeal under Section 112 once the Tribunal is functional. If conditions are met, any bank account attachment will be released. The respondent authorities can proceed if the petitioner fails to appeal within the specified timeframe. This ensures the petitioner is not prejudiced by the Tribunal's non-constitution, providing a structured approach for future appeal.

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Issues: Petitioner seeking appeal remedy due to non-constitution of Tribunal under B.G.S.T. Act.

Analysis:
The petitioner filed a writ petition under Article 226 seeking various reliefs, primarily desiring to avail the statutory remedy of appeal against an impugned 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 this statutory remedy as well as 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 High Court noted that the petitioner should not be deprived of the benefit due to the non-constitution of the Tribunal by the respondents themselves. The Court directed that upon deposit of a specified sum, the petitioner must be extended the statutory benefit of stay under Section 112 of the B.G.S.T. Act to prevent recovery of the balance tax amount. The Court referred to a similar relief granted in a previous case to support its decision.

Furthermore, the Court emphasized that the relief of stay, upon deposit of the required amount, should not be open-ended. The Court held that the petitioner would need to file an appeal under Section 112 of the B.G.S.T. Act once the Tribunal is constituted and functional, and the President or State President enters office. The appeal should be filed within the specified period after the Tribunal's establishment to facilitate consideration. If the petitioner chooses not to file an appeal within the specified period, the respondent authorities would be allowed to proceed further in accordance with the law. Additionally, if the specified conditions are met, any attachment of the petitioner's bank account pursuant to the tax demand shall be released.

In conclusion, the High Court disposed of the writ petition with the above directions, observations, and liberty granted to the parties, ensuring that the petitioner is not unfairly prejudiced by the non-constitution of the Tribunal and providing a structured approach for the petitioner to pursue the appeal remedy once the Tribunal is established.

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