Patna High Court Upholds Stay of Recovery in GST Case Amidst Absence of GST Tribunal

Case Details: Bablu Kumar v. Union of India - [2023] 149 taxmann.com 362 (Patna)

Judiciary and Counsel Details

• • Chakradhari Sharan Singh, ACJ. & Madhuresh Prasad, J.
  • Amit Pandey, Adv. for the Petitioner.
  • K.N. Singh, Sr. Adv. Vikash Kumar & Anshuman Singh for the Respondent.

Facts of the Case

The petitioner filed writ petition before the Patna High Court under Article 226 of the Constitution of India. The petitioner is seeking for the quashing of order where the petitioner is prevented from availing the benefit of stay of recovery of the balance amount of tax upon the deposit of the pre-deposit amount. Whereas, the Department argued based on the fact that GST Tribunal has not been constituted.

High Court Held

The High Court referred to the case of Angel Engicon Private Limited v. The State of Bihar & Anr., wherein the Court had disposed of a similar writ petition with certain observations and directions, allowing the petitioner to avail the statutory benefit of stay under Section 112(9) of the BGST Act upon depositing the pre-deposit amount of a sum equal to 20% of the remaining amount of tax in dispute. The court also directed the petitioner to file an appeal before the Appellate Tribunal under Section 112 of the BGST Act once the Tribunal is constituted and made functional.

Based on the aforesaid case, the Patna High Court disposed off the given writ petition.