GST appeal pre-deposit and recovery stay apply despite non-constitution of Tribunal, with bank attachment to be lifted.

Amendment to the Bihar Goods and Services Tax Act, 2017 reduced the pre-deposit for a Tribunal appeal to 10% of the disputed tax, and the assessee could not be denied the corresponding stay of recovery merely because the GST Tribunal had not yet been constituted. The recovery protection was treated as available on deposit of the statutory amount, with the practical safeguard that the appeal must be filed once the Tribunal becomes functional. Consequentially, attachment of the bank account was liable to be released subject to compliance with the pre-deposit and future filing requirement.

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Issues: Whether, pending constitution of the Goods and Services Tax Tribunal, the assessee was entitled to the statutory benefit of stay of recovery on depositing 10% of the disputed tax amount under the amended appellate scheme, and whether consequential attachment of the bank account was liable to be lifted.

Analysis: The amendment to Section 112 of the Bihar Goods and Services Tax Act, 2017 reduced the pre-deposit requirement to 10% for maintaining an appeal before the Tribunal. Since the Tribunal had not yet been constituted, the assessee could not be deprived of the statutory stay benefit on account of the respondents' failure to make the Tribunal functional. At the same time, the stay protection was treated as linked to the future availability of the appellate forum, so the assessee was required to file the appeal once the Tribunal became functional.

Conclusion: On deposit of 10% of the disputed tax amount, the assessee was held entitled to stay of recovery, and any bank account attachment pursuant to the demand was directed to be released. The benefit was made contingent upon filing the appeal before the Tribunal after its constitution.

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