GST Tribunal delay: stay of recovery granted on 10% deposit, with appeal to be filed once the Tribunal is functional.
Where the GST Tribunal was not yet constituted, the Patna HC extended the statutory stay framework under Section 112 of the CGST Act by allowing recovery to remain stayed on deposit of 10% of the disputed tax, reflecting the reduced pre-deposit requirement that would apply from 01.11.2024. The relief was conditional rather than indefinite: once the Tribunal becomes functional, the assessee must file the statutory appeal before it within the prescribed time. If the appeal is not filed as required, the authorities may proceed in accordance with law. The order also treated bank account attachment as liable to be released on compliance with the 10% deposit condition.
Issues: Whether, in the absence of a constituted GST Tribunal, the assessee was entitled to stay of recovery on deposit of 10% of the disputed tax amount, and what further obligation would arise once the Tribunal becomes functional.
Analysis: The order records that the amended pre-deposit requirement under Section 112 of the Central Goods and Services Tax Act, 2017 had reduced the amount from 20% to 10%, but the amendment was to operate from 01.11.2024. Since the Tribunal had not yet been constituted, the Court extended the statutory benefit of stay of recovery on payment of 10% of the tax in dispute, treating the petitioner as entitled to the benefit that could not be denied merely because the Tribunal was unavailable. The relief was made conditional and not open-ended: the petitioner would have to file the appeal before the Tribunal once it is constituted and made functional, and the authorities would be free to proceed in accordance with law if the appeal is not filed within the prescribed time.
Outcome: On deposit of 10% of the disputed tax amount, the petitioner obtained stay of recovery and release of any bank account attachment, with the obligation to pursue the statutory appeal before the Tribunal after its constitution.
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