A Division bench of Patna High Court granted relief to the petitioner due to the absence of the Goods and Appellate Tribunal (GSTAT). The High Court stayed the recovery of the balance amount of the Goods and Services Tax (GST).
Due to the non-constitution of the Goods and Services Tax Appellate Tribunal (GSTAT), the petitioner was deprived of his statutory remedy under Sub-Section (8) and Sub-Section (9) of Section 112 of the Bihar Goods Services Tax Act, 2017 (BGST Act), the petitioner M/S Gaytri Pharma filed a writ petition before the High Court.
The BGST Act’s Section 112 outlines how to appeal a decision to the appellate panel. But it hasn’t yet taken shape.
The bench composed of Chief Justice K. Vinod Chandran and Justice Madhuresh Prasad noted that the petitioner must be granted the legal benefit of a stay under Sub-Section (9) of Section 112 of the B.G.S.T. Act, subject to the deposit of a sum equal to 20% of the outstanding 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.
Further observed that the petitioner cannot be deprived of the benefit, due to the non- constitution of the tribunal by the respondents themselves. Thus it was decided to stay the recovery of the balance amount.
Additionally, the bench directed the petitioner 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. Additionally, the respondent authorities would be permitted to proceed with the case in accordance with the law if the petitioner refused to use the remedy of appeal by filing any appeal under Section 112 of the B.G.S.T. Act before the Tribunal within the time frame that may be stipulated upon the Tribunal’s constitution.
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