Case Law Details
Trimurti Private Limited Vs State of Bihar (Patna High Court)
Introduction: In the legal battle of Trimurti Private Limited against the State of Bihar, the Patna High Court has intervened to address a crucial issue— the non-constitution of the Appellate Tribunal under the Bihar Goods and Services Tax Act. This article provides a detailed analysis of the court’s judgment/order and its implications for the petitioner and the state authorities.
Detailed Analysis: The petitioner, seeking relief under Article 226 of the Constitution of India, aims to exercise the statutory remedy of appeal against an impugned order. However, due to the absence of the Appellate Tribunal, the petitioner is deprived of this remedy as specified in Section 112 of the Bihar Goods and Services Tax Act.
The court notes the acknowledgment by the respondent State authorities regarding the non-constitution of the Tribunal. In response, a notification is issued to address difficulties, stipulating that the period of limitation for filing an appeal before the Tribunal shall commence only after its constitution.
The court’s disposition involves a conditional grant of stay on the recovery of the remaining tax amount. The petitioner must deposit 20 percent of the disputed amount, in addition to the previous deposit under Section 107 of the B.G.S.T. Act. This stay is granted due to the non-constitution of the Tribunal by the respondents. Similar relief has been granted in precedent cases.
The court, however, emphasizes that the stay is not open-ended. It outlines that once the Tribunal is constituted and functional, the petitioner must file the appeal under Section 112 of the B.G.S.T. Act, adhering to statutory requirements.
If the petitioner chooses not to avail the remedy within the specified period upon the Tribunal’s constitution, the respondent authorities are granted the liberty to proceed further in accordance with the law. The court’s order also includes the release of any bank account attachment if the specified conditions are met.
Conclusion: The Patna High Court’s judgment in Trimurti Private Limited Vs State of Bihar brings relief to the petitioner by staying the GST demand until the Appellate Tribunal is constituted. The court balances the equities by granting a conditional stay, ensuring the petitioner’s rights are protected while setting a timeframe for pursuing the statutory remedy. This case underscores the significance of timely tribunal constitution for effective legal recourse under the GST Act.
FULL TEXT OF THE JUDGMENT/ORDER OF PATNA HIGH COURT
The instant writ petition has been filed under Article 226 of the Constitution of India seeking multifarious reliefs.
2. The petitioner essentially is desirous of availing statutory remedy of appeal against the impugned order before the Appellate Tribunal (hereinafter referred to as “Tribunal”) under Section 112 of the Bihar Goods and Services Tax Act (hereinafter referred to as “B.G.S.T. Act”).
3. 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.
4. 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.
5. The respondent State authorities have acknowledged the fact of non-constitution of the Tribunal and come out with a notification bearing Order No. 09/2019-State Tax, S. O. 399, dated 11.12.2019 for removal of difficulties, in exercise of powers under Section 172 of the B.G.S.T Act, which provides 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.
6. This Court is, therefore, inclined to dispose of the instant writ petition in the following terms:-
(i) Subject to deposit of 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 petitioner cannot be deprived of the benefit, due to non- constitution of the Tribunal by the respondents themselves. 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. 15546 of 2022.
(ii) The statutory relief of stay, on deposit of the statutory amount, however in the opinion of this Court, cannot be open ended. For balancing the equities, therefore, the Court is of the opinion that 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 G.S.T. Act, once the Tribunal is constituted and made functional and the President or the State President may enter office. The appeal would be required to be filed observing the statutory requirements after coming into existence of the Tribunal, for facilitating consideration of the appeal.
(iii) In case the petitioner chooses not to avail the remedy of appeal by filing any appeal under Section 112 of the B.G.S.T. Act before the Tribunal within the period which may be specified upon constitution of the Tribunal, the respondent- Authorities would be at liberty to proceed further in the matter, in accordance with law.
(iv) If the above order is complied with and a sum equivalent to 20 per cent of the remaining amount of the tax in dispute is paid then, if there is any attachment of the bank account of the petitioner pursuant to the demand, the same shall be released.
7. With the above liberty, observation and directions, the writ petition stands disposed of.
