NATIONAL INSURANCE CO. LTD. Vs. STATE OF BIHAR

JUDGEMENT

(1.) We are again faced with the problem of 'valiant tax executives clothed with judicial powers remembering their former capacity at the expense of the latter' (sic)- as stated in R.S Joshi, Sales Tax Officer, Gujarat and Others v. Ajit Mills Limited and Another; (1997) 4 SCC 98.

(2.) Bereft of the facts leading to the writ petition, we have to only notice that on 21/9/2022, an appeal filed by the assessee/petitioner against the order of assessment dtd. 17/2/2022 was rejected. There was no Appellate Tribunal constituted as provided under Sec. 109 of the Bihar Goods and Services Tax Act.

(3.) Even in that circumstance, the assessee paid up 20% of the tax in dispute being Rs.5.70 crores as per Sec. 112(8) of the Central Goods and Services Tax Act, 2017 on 21/10/2022. At the time of filing of the appeal, admittedly, 10% of the tax in dispute was paid, which is mandated for the institution of a proper appeal before the first Appellate Authority. Despite the payment of 20% of the tax in dispute having been made after the first Appellate Authority rejected the appeal, a demand was issued at 5/1/2023. Apprehending coercive action, the petitioner, a public sector undertaking filed the above writ petition on 6/1/2023. The tax authorities, presumably, in retaliation recovered the entire balance remaining payable, under Sec. 79 of the Central Goods and Services Tax Act, 2017 on 7/1/2023.