Order Date – 19 June 2023

Parties: M/s Pragati Enterprises Vs Union of India, The State of Bihar, The Commissioner of Central GST and Central Excise, Patna-1, The Commissioner Bihar Commercial Tax Department, The Additional Commissioner (Appeal), Bihar State GST and The Assistant Commissioner, Bihar State GST

Facts – 

• The Petitioner, M/s Pragati Enterprises, essentially is desirous of availing statutory remedy of appeal against the impugned order before the Appellate Tribunal under Section 112 of the Bihar Goods and Services Tax Act.
• 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.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.

Issue – 

• Whether alternative remedy is available to petitioner?

Order – 

• The Divisional Bench of Hon’ble High Court held that by depositing 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 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.
• Since order is being passed due to non-constitution of the Tribunal by the respondent- Authorities, 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. If the petitioner chooses not to avail the remedy of appeal, the respondent- Authorities would be at liberty to proceed further in the matter, in accordance with law.

#need for GST in India