The court granted a stay on tax recovery and attached bank accounts despite the non-constitution of the Bihar GST Tribunal, ordering the petitioner to pay 20% of the remaining tax and file an appeal once the Tribunal is functional.
Stay of recovery of balance tax and release of bank attachments subject to deposit of 20% of the remaining tax amount.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.13019 of 2024
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M/s. Balajee Traders through its Authorized Representative namely Ashok Kumar, aged about 52 (Male), Son of Late Ramjanma Prasad, Resident of Motihari, P.S.- Motihari, District- East Champaran.
... ... Petitioner/s
Versus
... ... Respondent/s
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Appearance :
For the Petitioner/s : Mr.Madan Kumar, Advocate For the Respondent/s : Dr.K.N. Singh, ASG
====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE NANI TAGIA ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE)
Date : 06-09-2024
The instant writ petition has been filed under Article 226 of the Constitution of India seeking multifarious reliefs.
Patna High Court CWJC No.13019 of 2024 dt.06-09-2024 2/4
"Tribunal" ) under Section 112 of the Bihar Goods and Services Tax Act (hereinafter referred to as "B.G.S.T. Act").
Patna High Court CWJC No.13019 of 2024 dt.06-09-2024 3/4
the instant writ petition in the following terms:-
(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 .
(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.
(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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respondent- Authorities would be at liberty to proceed further in the matter, in accordance with law.
(iv) If the above order is complied with and a sum equivalent to 20 per cent of the remaining amount of the tax in dispute is paid then, if there is any attachment of the bank account of the petitioner pursuant to the demand, the same shall be released.
the writ petition stands disposed of.
(K. Vinod Chandran, CJ)
(Nani Tagia, J)
Anushka/-
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3 issues framed by the court
Whether a petitioner should be extended statutory benefit of stay under Section 112 of the Bihar GST Act due to non-constitution of the Tribunal.
Whether the petitioner must file an appeal before the Tribunal once it is constituted after availing the stay relief granted in absentia.
Whether attachment of the petitioner's bank account pursuant to a tax demand shall be released upon compliance with the stay order.
Colour shows how this judgement treated each authority
SAJ Food Products Pvt. Ltd. vs. The State of Bihar & OthersReferred¶29
SAJ Food Products Pvt. Ltd. vs. The State of Bihar & Others in C.W.J.C. No. 15465 of 2022
5 provisions across 2 enactments
M/s. Balajee Traders through its Authorized Representative namely Ashok Kumar
The Union of India
The State of Bihar
K. Vinod Chandran
Nani Tagia
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
