M/S Heba Printing Works vs. The State Of Bihar

Held

The Court acknowledged that the petitioner has a statutory remedy of appeal before the Appellate Tribunal. However, it noted that the Appellate Tribunal has not yet been constituted. In light of this situation, the Court referred to Circular No. 224/18/2024-GST, issued by the Government of India on 11th July, 2024, which provides certain instructions for taxpayers. The Court permitted the petitioner to avail the benefit of this circular. Consequently, the Court allowed the petitioner to withdraw the present writ petition. The reasoning was based on the procedural difficulty created by the non-constitution of the appellate forum and the availability of a specific circular to address such situations. The ratio decidendi is that in the absence of a functional statutory appellate authority, taxpayers can seek recourse through relevant government circulars, and the High Court may permit withdrawal of a writ petition to allow them to pursue such recourse.

Facts

The petitioner, M/s Heba Printing Works, filed a writ petition challenging several orders issued by the State Tax authorities. These orders included a Final Audit Report (Ref. No. 2277, dated 25.10.2023) for the financial year 2018-19, which found tax and interest payable. Subsequently, the Assistant Commissioner issued a notice under Section 73(1) of the BGST Act, 2017 (Process No. 2434, dated 04.11.2023), demanding tax, interest, and penalty. A further order under Section 73(9) of the BGST Act, 2017 (Process No. 6018, dated 29.03.2024) increased the demand, followed by a consequential Demand Notice (DRC 07, dated 30.03.2024). The petitioner's appeal against these demands was rejected by the Additional Commissioner (Memo No. 752, dated 22.11.2024). The total disputed amount, as per the orders, was substantial, including tax, interest, and penalty.

Key Issues

1. Whether the petitioner can maintain a writ petition before this Court when a statutory remedy of appeal before the Appellate Tribunal is available, despite the Appellate Tribunal not being constituted? 2. Whether the petitioner is entitled to avail the benefit of Circular No. 224/18/2024-GST dated 11th July, 2024, in the absence of a constituted Appellate Tribunal? The petitioner contended that while a statutory appeal lies before the Appellate Tribunal, its non-constitution necessitates this writ petition. The petitioner sought to rely on Circular No. 224/18/2024-GST, which provides instructions in such circumstances. The respondents, represented by the Standing Counsel, did not present any specific arguments on the merits of the case but were implicitly defending the orders passed by the authorities.