In the present case, an appeal filed by the assessee against the assessment order dated 17-2-2022 was rejected. As, there is no Appellate Tribunal constituted as per section 109 of the Bihar GST Act, the assessee was unable to file appeal before the Tribunal. However, the assessee paid additional 20% of the tax in dispute being Rs. 5.70 crores as per Section 112(8) of CGST Act on 21-10-2022.
Despite the payment of 20% of tax in dispute, a demand was issued as on 05-01-2023. Accordingly, recovery of tax was made by the authorities.
The Hon’ble Patna High Court held that since Appellate Tribunal was not constituted, no such recovery could have been made by the authorities. Therefore, entire amount recovered was to be refunded to assessee with interest under Section 112 read with section 79 of CGST and Bihar GST Acts. The Hon’ble High Court also imposed a cost of Rs. 5,000/- on the Officer, who issued the demand and appropriated the money from the bank account of the assessee.
Case: National Insurance Co. Ltd. Vs. State of Bihar -2024 TAXONATION 84 (PATNA)
JS Pravendra & Associates
