Scintillation Trucking INDIA Private Limited vs. The State Of Bihar

Facts

The petitioner, Scintillation Trucking India Private Limited, filed a writ petition before the Patna High Court seeking various reliefs. The primary grievance was the inability to avail the statutory remedy of appeal before the Appellate Tribunal under Section 112 of the Bihar Goods and Services Tax (B.G.S.T.) Act due to the non-constitution of the Tribunal. This prevented the petitioner from obtaining a stay on the recovery of the balance tax amount, as contemplated under Section 112(8) and (9) of the B.G.S.T. Act, upon depositing the requisite pre-deposit. The State authorities acknowledged the non-constitution of the Tribunal and issued a notification (Order No. 09/2019-State Tax, S. O. 399, dated 11.12.2019) under Section 172 of the B.G.S.T. Act, stating that the limitation period for filing appeals would commence only after the President of the Tribunal entered office.

Held

The Court held that the petitioner should be extended the statutory benefit of stay under sub-section (9) of Section 112 of the B.G.S.T. Act, subject to the deposit of a sum equal to 20 percent of the remaining amount of tax in dispute, in addition to any amount already deposited under sub-section (6) of Section 107 of the B.G.S.T. Act. The Court reasoned that the petitioner cannot be deprived of this benefit due to the non-constitution of the Tribunal by the respondents themselves. Consequently, the recovery of the balance amount and any steps taken in this regard were deemed to be stayed. The Court also held that this relief cannot be open-ended. The petitioner would be required to file their appeal under Section 112 of the B.G.S.T. Act once the Tribunal is constituted and made functional, observing all statutory requirements. If the petitioner fails to file an appeal within the period specified upon the Tribunal's constitution, the respondent authorities would be at liberty to proceed in accordance with law. The Court noted that similar relief was granted in the case of SAJ Food Products Pvt. Ltd. vs. The State of Bihar & Others.

Key Issues

1. Whether the petitioner is entitled to the statutory benefit of stay under Section 112(9) of the B.G.S.T. Act, despite the non-constitution of the Appellate Tribunal, by depositing 20 percent of the remaining disputed tax amount? 2. Whether the petitioner can be deprived of the statutory remedy of appeal and the consequential benefit of stay due to the respondents' failure to constitute the Tribunal? Petitioner's Arguments: The petitioner contended that they are being deprived of their statutory right to appeal and to obtain a stay on recovery due to the non-constitution of the Tribunal by the respondents. They argued that the benefit of stay under Section 112(9) should be extended to them upon fulfilling the pre-deposit requirement, as the delay is attributable to the State. They relied on the principle that a litigant should not suffer due to the administrative inaction of the authorities. Respondent's Arguments: The respondent State authorities acknowledged the non-constitution of the Tribunal and had issued a notification under Section 172 of the B.G.S.T. Act to address the issue of limitation. The judgment does not record specific arguments from the respondents regarding the petitioner's entitlement to the stay in the absence of the Tribunal, beyond acknowledging the factual situation.