Allowed

Sabita Singh v. The Union of India

Patna HC22 Aug 2024CWJC/12169/2024

Case brief

AI extract

What is this about?

This writ petition addresses the denial of statutory appellate remedy and stay of recovery under the Bihar GST Act due to the non-constitution of the Appellate Tribunal. The Court granted stay of recovery subject to a 20% deposit of the remaining tax amount. The Court directed the petitioner to file the appeal once the Tribunal is constituted, allowing authorities to proceed if no appeal is filed

What did the court decide?

Stay of recovery of balance tax allowed subject to deposit of 20% of remaining amount. Direction to file appeal once Tribunal is constituted.

Sabita Singh Vs The Union of India — GST and Indirect Tax | Patna HC (2024)

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IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.12169 of 2024

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Sabita Singh wife of Sri Barun Kumar Singh, resident of Village Ward No. -27, Donal Allapatti Ahila, P S Darbhanga, District-Darbhanga, Bihar.

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... ... Petitioner/s

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Versus

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The Union of India through the Secretary, Ministry of Finance (Department of Revenue), Government of India, New Delhi.

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The Under Secretary, Ministry of Finance (Department of Revenue), Government of India, New Delhi.

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The State of Bihar through the Chief Secretary, Government of Bihar, Patna.

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The Principal Secretary, Department of Finance, Government of Bihar, Patna.

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The Joint Commissioner State Tax (J.C.S.T.) Darbhanga Division, Darbhanga.

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The Assistant Commissioner State Tax, Darbhanga.

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... ... Respondent/s

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====================================================== Appearance : For the Petitioner/s : Mr. Uday Prasad Singh, Advocate For the Respondent/s : Dr. K.N.Singh, ASG Mr. Anshuman Singh, Sr. SC, CGST & CX Mr. Devansh Shankar Singh, Advocate For the State : Mr. Vikash Kumar, SC-11 ======================================================

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CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE PARTHA SARTHY ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE)

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Date : 22-08-2024

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The instant writ petition has been filed under Article 226 of the Constitution of India seeking multifarious reliefs.

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The petitioner essentially is desirous of availing statutory remedy of appeal against the impugned order before the Appellate Tribunal (hereinafter referred to as

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Patna High Court CWJC No.12169 of 2024 dt.22-08-2024 2/4

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"Tribunal" ) under Section 112 of the Bihar Goods and Services Tax Act (hereinafter referred to as "B.G.S.T. Act").

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However, due to non-constitution of the Tribunal , the petitioner is deprived of his statutory remedy under Sub-Section (8) and Sub-Section (9) of Section 112 of the B.G.S.T. Act.

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Under the circumstances, the petitioner is also prevented from availing the benefit of stay of recovery of balance amount of tax in terms of Section 112 (8) and (9) of the B.G.S.T Act upon deposit of the amounts as contemplated under Sub-section (8) of Section 112.

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The respondent State authorities have acknowledged the fact of non-constitution of the Tribunal and come out with a notification bearing Order No. 09/2019-State Tax, S. O. 399, dated 11.12.2019 for removal of difficulties, in exercise of powers under Section 172 of the B.G.S.T Act, which provides that period of limitation for the purpose of preferring an appeal before the Tribunal under Section 112 shall start only after the date on which the President, or the State President, as the case may be, of the Tribunal after its constitution under Section 109 of the B.G.S.T Act, enters office.

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This Court is, therefore, inclined to dispose of

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Patna High Court CWJC No.12169 of 2024 dt.22-08-2024 3/4

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the instant writ petition in the following terms:-

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(i) Subject to deposit of a sum equal to 20 percent of the remaining amount of tax in dispute, if not already deposited, in addition to the amount deposited earlier under Sub-Section (6) of Section 107 of the B.G.S.T. Act, the petitioner must be extended the statutory benefit of stay under Sub-Section (9) of Section 112 of the B.G.S.T. Act. The petitioner cannot be deprived of the benefit, due to non- constitution of the Tribunal by the respondents themselves. The recovery of balance amount, and any steps that may have been taken in this regard will thus be deemed to be stayed. It is not in dispute that similar relief has been granted by this Court in the case of SAJ Food Products Pvt. Ltd. vs. The State of Bihar & Others in C.W.J.C. No. 15465 of 2022 .

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(ii) The statutory relief of stay, on deposit of the statutory amount, however in the opinion of this Court, cannot be open ended. For balancing the equities, therefore, the Court is of the opinion that since order is being passed due to nonconstitution of the Tribunal by the respondentAuthorities, the petitioner would be required to present/file his appeal under Section 112 of the B.G.S.T. Act, once the Tribunal is constituted and made functional and the President or the State President may enter office. The appeal would be required to be filed observing the statutory requirements after coming into existence of the Tribunal, for facilitating consideration of the appeal.

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(iii) In case the petitioner chooses not to avail the remedy of appeal by filing any appeal under Section 112 of the B.G.S.T. Act before the Tribunal within the period which may be specified upon constitution of the Tribunal, the

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Patna High Court CWJC No.12169 of 2024 dt.22-08-2024 4/4

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respondent- Authorities would be at liberty to proceed further in the matter, in accordance with law.

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The learned Counsel for the petitioner submits that the entire tax demand has been satisfied, which shall be verified by the Assessing Officer and if it is satisfied, the 20% deposit need not be paid, but otherwise stay of recovery shall be only on the deposit of the 20% of the balance dues in addition to the 10% deposited on first appeal.

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With the above liberty, observation and directions, the writ petition stands disposed of.

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(K. Vinod Chandran, CJ)

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( Partha Sarthy, J)

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Saurabh/-

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AFR/NAFR
CAV DATE
Uploading Date	22.08.2024
Transmission Date

Sabita Singh v. The Union of India

Case brief

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Sabita Singh v. The Union of India

Case brief

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