Case Summary: M/s. Prasad Construction and Co. Vs. Union of India
Case No.: Civil Writ No.10968 of 2024
Date of Order: 24 July 2024
Name of Court: High Court of Judicature at Patna
Summary of Case:
The petitioner, M/s. Prasad Construction and Co., filed a writ petition seeking relief under Article 226 of the Constitution of India. The core issue was the inability to appeal against an impugned order due to the non-constitution of the Appellate Tribunal under Section 112 of the Bihar Goods and Services Tax Act (B.G.S.T. Act).
Facts of the Case:
The petitioner wished to appeal an order before the Appellate Tribunal. However, due to the non-constitution of the Tribunal, the petitioner was deprived of this statutory remedy. Consequently, the petitioner was also unable to stay the recovery of the balance amount of tax as provided under Section 112 (8) and (9) of the B.G.S.T. Act.
Submissions by Petitioner: The petitioner argued that:
· They were unable to file an appeal due to the non-constitution of the Tribunal.
· They were also unable to stay the recovery of the disputed tax amount as provided by the Act.
· The state authorities had issued a notification acknowledging the non-constitution of the Tribunal and extending the limitation period for filing an appeal until the Tribunal is constituted.
Submissions by Respondent:
· The respondents, including representatives of the Union of India and the State of Bihar, acknowledged the factual situation regarding the non-constitution of the Tribunal and the related statutory complications.
Findings of Court:
The court recognized the non-constitution of the Tribunal and the resultant deprivation of the petitioner's statutory remedy. The court also acknowledged a similar relief granted in a previous case (SAJ Food Products Pvt. Ltd. vs. State of Bihar & Others).
Judgment: The court disposed of the writ petition with the following directions:
· Upon deposit of 20% of the disputed tax amount, in addition to any amount previously deposited under Section 107 (6) of the B.G.S.T. Act, the petitioner would be granted a stay of recovery under Section 112 (9).
· The recovery of the balance amount would be stayed until the Tribunal is constituted and the petitioner files an appeal.
· The petitioner must file the appeal within the statutory period after the Tribunal is constituted.
· If the petitioner fails to file the appeal within the specified period post-constitution of the Tribunal, the respondent authorities can proceed further according to the law.
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