Welkin Telecom Infra PVT. LTD. vs. The State Of Bihar

Facts

The petitioner, Welkin Telecom Infra Pvt. Ltd., filed a writ petition challenging an order dated December 19, 2022, passed by the Assistant Commissioner of State Tax, Special Circle, Patna. The impugned order pertains to the assessment year 2017-18. The petitioner relied on an agreement to support its case, but the Court noted that this agreement had expired on March 31, 2012, which predated the assessment year in question. The petitioner's counsel submitted that there was a subsequent renewal of the agreement, which was not pleaded in the writ petition. The Court observed that an appeal remedy was available under Section 107 of the Bihar Goods and Services Tax (BGST) Act, and the petitioner had approached the High Court within the period allowed for filing a delayed appeal.

Held

The Court was not inclined to continue with the writ petition as the agreement produced by the petitioner had expired on March 31, 2012, and the impugned order was for the assessment year 2017-18. The Court found no basis to rely on an expired agreement for a subsequent assessment year. Although the petitioner's counsel mentioned a subsequent renewal, it was not pleaded. The Court noted that an appeal remedy was available under Section 107 of the BGST Act and the petitioner had approached the High Court within the time frame for filing a delayed appeal. Therefore, the petitioner was permitted to avail the appellate remedy. The Court clarified that its observations regarding the agreement's expiry were based on the records before the writ court, and the Appellate Authority would decide the case based on evidence and law if the renewal was properly established.

Key Issues

1. Whether an agreement that expired on March 31, 2012, can be relied upon for an assessment year of 2017-18 under Section 33 of the Bihar Goods and Services Tax Rules, 2017? Petitioner's contention: The petitioner argued that a subsequent renewal of the expired agreement existed, which could validate its reliance on the agreement for the assessment year 2017-18. However, this renewal was not pleaded in the writ petition. Revenue's contention: The revenue, through the Assistant Commissioner of State Tax, relied on the fact that the agreement produced by the petitioner had expired prior to the relevant assessment year. The Court did not record any specific arguments from the revenue regarding the renewal of the agreement.