HC Granted Statutory Benefit of Stay & Directed Petitioner to File Appeal After Tribunal is Formed

Case Details: Flipkart India (P.) Ltd. v. Additional Commissioner of State Tax (Appeal) [2023] 151 taxmann.com 10 (Patna)

Judiciary and Counsel Details

• • K. Vinod Chandran, CJ. & Madhuresh Prasad, J.
  • Parijat Saurav, Adv. for the Petitioner.
  • K.N. Singh, ASG and Vivek Prasad for the Respondent.

Facts of the Case

The assessee had intended to avail statutory remedy of appeal and benefit of stay of recovery of balance amount of tax against the order passed before the Appellate Tribunal. However, due to non-constitution of the Tribunal, the assessee was unable to avail such statutory remedies and therefore, it filed writ petition before the High Court to avail the statutory benefit of appeal and stay of recovery of balance amount of tax.

High Court Held

The Honorable High Court noted that the assessee can’t be deprived of the benefit of stay due to non- constitution of the Tribunal. The Court noted that the department has already issued notification which provides that period of limitation for the purpose of preferring an appeal before the Tribunal under Section 112 shall start only after the date on which the Tribunal is constituted.

Therefore, the Court held that the assessee must be granted statutory benefit of stay after depositing 20% amount of tax in dispute in addition to amount already deposited. The Court also directed the assessee to file appeal under Section 112 once the Tribunal is constituted and made functional.