Case Law Details
Mani Printers Vs State of Bihar (Patna High Court)
In the case of Mani Printers vs. State of Bihar & Ors., the Patna High Court addressed the issue of GST recovery dues in light of a proposal to reduce the appeal deposit from 20% to 10% under the Bihar Goods and Services Tax Act, 2017 (BGST Act). Currently, the GST Appellate Tribunal has not been constituted, which has resulted in the court previously requiring the payment of 20% of tax dues for filing appeals. This long-standing requirement has faced criticism, leading to the proposal for a reduction in the deposit amount. Although the notification formalizing this change has not yet been issued, the court’s ruling reflects an acknowledgment of the ongoing discussions surrounding the matter.
Taking into account the proposal to lower the appeal deposit, the court decided to grant a stay on the recovery of the GST dues, contingent on the petitioner paying 10% of the tax dues within one month. This ruling aims to alleviate the immediate financial burden on the petitioner while awaiting the establishment of the GST Appellate Tribunal and the subsequent implementation of the reduced deposit requirement. The court’s decision indicates a willingness to adapt to the evolving legislative landscape concerning GST appeals and reflects a pragmatic approach to handling cases in the interim period.
This ruling serves as an important precedent in the context of GST litigation, highlighting the court’s recognition of the difficulties faced by taxpayers in complying with the existing regulations while also emphasizing the need for timely establishment of the GST Appellate Tribunal. The stay on recovery at a reduced deposit rate may encourage more taxpayers to engage with the appeals process, potentially leading to a more balanced resolution of disputes related to GST dues. Overall, the decision demonstrates the court’s role in ensuring that the legal framework surrounding GST remains equitable and accessible to those impacted by its provisions.
FULL TEXT OF THE JUDGMENT/ORDER OF PATNA HIGH COURT
It is submitted at the Bar that there is a proposal to reduce the tax dues to be deposited on filing an appeal before the GST Appellate Tribunal to 10% from 20%; as earlier stipulated under Section 112 of the BGST Act, 2017, which is yet to be constituted. However, a notification has not come as yet.
2. In fact, this Court has been disposing of writ petitions directing payment of 20% tax dues and ordering stay of recovery till the GST Appellate Tribunal is constituted and an appeal is filed, as prescribed at the time of such constitution.
3. Considering the fact that there is a proposal for reduction, there shall be a stay of the recovery on the petitioner paying 10% of the tax dues within a period of one month from today.
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