In CWJC No.4171 of 2023 – PATN HC- Petitioner cannot be deprived of statutory relief of stay under Section 112 (9) of the B.G.S.T. Act due to non-constitution of Tribunal: Patna HC
Justices Madhuresh Prasad & Chkradhari Sharan Singh [23-03-2023]

Read Order:  Life Insurance Corporation of India v. The Union of India and ors

Chahat Varma

New Delhi, April 14, 2023: While disposing of a writ petition, the High Court of Patna has held that the statutory benefit of stay under Sub-Section (9) of Section 112 of the B.G.S.T. Act must be extended to the Petitioner, as for non- constitution of the Tribunal the petitioner cannot be deprived of the benefit, provided he makes a deposit of a sum equal to 20 percent of the remaining amount of tax in dispute, in addition to the amount deposited earlier under Sub-Section (6) of Section 107 of the B.G.S.T. Act.  

In the present case, petitioner preferred an appeal against order dated 22.06.2022 passed under Section 73 (9) read with Section 50 of the BGST Act, 2017, which was dismissed by Additional Commissioner State Tax (Appeal) Central Division, Patna. Against the said impugned order, petitioner wanted to avail the statutory remedy of appeal, however, due to non-constitution of the Tribunal, the petitioner was deprived of his statutory remedy under Sub-Section (8) and Sub-Section (9) of Section 112 of the B.G.S.T. Act.

The Division Bench of Justice Madhuresh Prasad & Justice Chkradhari Sharan Singh took note of the notification bearing Order No. 09/2019-State Tax, S.O. 399, dated 11.12.2019, stating 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.

Opining that the equities are required to be balanced, the court held that the petitioner can file his appeal, once the Tribunal is constituted and made functional.