Case Law Details
National Insurance Co. Ltd. Vs State of Bihar (Patna High Court)
In a significant judgment, the Honorable Patna High Court directed the refund of the entire amount recovered by the GST authorities in the absence of a constituted GST Tribunal in the state of Bihar. The case of National Insurance Co. Ltd. vs. State of Bihar (Patna High Court) sheds light on the rights of taxpayers in situations where legal forums for appeal are unavailable.
Background of the Case:
The appellant, National Insurance Co. Ltd., filed an appeal against the order of assessment dated 17.02.2022. However, the appeal was rejected, and no GST Appellate Tribunal was constituted in Bihar, as required under Section 109 of the Bihar Goods and Services Tax Act.
Despite the absence of the Tribunal, the appellant paid 20% of the tax in dispute, amounting to Rs. 5.70 crores, in accordance with Section 112(8) of the Central Goods and Services Tax Act. Subsequently, a demand was issued on 05.01.2023, and the entire remaining payable balance was recovered on 07.01.2023, under Section 79 of the Central Goods and Services Tax Act.
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