Sanyog Construction Private Limited vs. The State Of Bihar

Held

The Court accepted the statement made by the learned counsel for the petitioner, under instructions from the petitioner, that the petitioner would deposit the admitted amount towards tax, interest, fine, fee, and penalty, and also a sum equal to 10% of the remaining amount of tax in dispute. This undertaking was accepted and taken on record. The Court also accepted the statement of the learned Standing Counsel for the State, who confirmed that if the petitioner complies with this undertaking, the concerned authority will allow the petitioner access to upload the statutory appeal on the GST Web Portal as required under Section 107 of the Central Goods and Services Tax Act, 2017/Bihar Goods and Services Tax Act, 2017. The Court directed that this be done positively within a period of four weeks from the date of the order. Furthermore, if the petitioner complies with this undertaking within the stipulated four weeks, the appellate authority was directed to hear the appeal through virtual mode, considering the circumstances of the Covid-19 pandemic, and decide it expeditiously, preferably within three months from the date of its filing. The petition was disposed of in these terms.

Facts

Sanyog Construction Private Limited (the petitioner) filed a writ petition before the Patna High Court challenging an assessment order dated May 30, 2019/August 30, 2019, passed under Section 62 of the GST Act, 2017, by the Deputy Commissioner of State Taxes, North Circle, Patna. This order resulted in a demand of Rs. 7,09,946.71, communicated via DRC-07 dated September 2, 2019. The petitioner sought permission to file a statutory appeal under Section 107 of the GST Act on the web portal without depositing the pre-requisite 10% of the disputed amount, which was Rs. 70,796/-. Alternatively, they requested a direction for the Commissioner of State Taxes to decide their application dated March 5, 2020, on merits. The tax period in dispute is May 2019.

Key Issues

1. Whether the petitioner should be permitted to file a statutory appeal under Section 107 of the GST Act, 2017, without depositing 10% of the disputed tax amount as a pre-requisite for uploading the appeal on the GST web portal? The petitioner argued that they should be allowed to file the appeal by depositing the admitted tax, interest, fine, fee, and penalty, along with 10% of the remaining disputed tax amount. They sought a direction to the respondent authorities to permit them to upload the statutory appeal on the GST web portal under Section 107 of the GST Act, 2017, without adjusting the full 10% of the assessed/disputed amount. The petitioner also sought to prevent recovery of the disputed amount until the appeal was filed. Alternatively, they prayed for a direction to the Commissioner of State Taxes to decide their pending application on merit. The revenue, represented by the State of Bihar through the Commissioner State Taxes and other authorities, contended that if the petitioner deposits the admitted tax, interest, fine, fee, and penalty, along with 10% of the remaining disputed tax amount, the concerned authority would allow access for uploading the statutory appeal on the GST Web Portal as required under Section 107 of the GST Act, 2017.