In Civil Writ Jurisdiction Case No. 10878 of 2023 -PAT HC- Patna High Court stays recovery of tax for Muskan Event Management in GST case
Justice K. Vinodchandran & Justice Partha Sarthy [29-08-2023]

Read Order: Muskan Event Management and Caterers Pvt. Ltd v. The Union of India and Ors

Chahat Varma

New Delhi, September 14, 2023: The Patna High Court has stayed the recovery of tax for Muskan Event Management and Caterers Pvt. Ltd. (petitioner), subject to the petitioner depositing 20% of the remaining amount of tax in dispute.

In the case at hand, the petitioner was desirous of availing statutory remedy of appeal against the impugned order before the Appellate Tribunal, under Section 112 of the Bihar Goods and Services Tax Act. However, due to non-constitution of the Appellate Tribunal, the petitioner was deprived of their statutory remedy.

The division bench of Justice K. Vinodchandran and Justice Partha Sarthy agreed with the petitioner and held that it was entitled to the statutory benefit of stay under Section 112(9) of the Bihar GST Act, even though the Tribunal had not been constituted yet.

However, the bench also noted that the stay cannot be open-ended and that the petitioner would be required to file an appeal once the Tribunal was constituted.

With the above liberty, observation and directions, the writ petition was disposed of.