Facts of the Case

M/s Heba Printing Works challenged an order dated 15.02.2024 passed under Section 73(9) of the Bihar GST Act, 2017 raising a demand of Rs.91,04,531.16 towards tax, interest and penalty for Financial Year 2019-20, the consequential Form DRC-07 demand notice dated 19.02.2024, and the appellate order dated 22.11.2024 rejecting the petitioner's first appeal. The petitioner's statutory remedy against the appellate rejection lay before the GST Appellate Tribunal, which, as the Court noted, had still not been constituted even as of the hearing date.

Issues Involved

  1. What relief is available to a taxpayer whose statutory second appeal lies before the GST Appellate Tribunal, which remains unconstituted.
  2. Whether CBIC Circular No. 224/18/2024-GST, issued to address this gap, can be availed by the petitioner in lieu of pressing the writ petition further.

Petitioner's Arguments

  • Sought setting aside of the Section 73(9) order, the consequential DRC-07 notice, and the appellate rejection order, pending the non-constitution of the Appellate Tribunal.

Respondent's Arguments

  • No specific contest is recorded; the matter proceeded on the basis of the Government's own CBIC Circular addressing the Tribunal's non-constitution.

Court Order / Findings

  • The Court noted that although the petitioner has a statutory remedy of appeal before the Appellate Tribunal, the Tribunal has not been constituted to date, and the Government of India has issued CBIC Circular No. 224/18/2024-GST dated 11th July, 2024 with instructions for taxpayers in this situation.
  • The petitioner was permitted to avail the benefit of Circular No. 224/18/2024-GST.
  • On this basis, the petitioner was permitted to withdraw the writ petition, and it stood dismissed as withdrawn.

Important Clarification

  • Pending constitution of the GST Appellate Tribunal, taxpayers aggrieved by a first-appellate order are directed to the protection afforded under CBIC Circular No. 224/18/2024-GST (which generally permits deferment of pre-deposit and recovery action until the Tribunal becomes functional and the limitation for filing a Tribunal appeal begins to run), rather than continuing to press a writ challenge to the underlying orders.

Sections Involved

  • Section 73(9), Bihar GST Act, 2017 — determination of tax, interest and penalty.
  • Section 112, CGST Act, 2017 — appeal to the Appellate Tribunal (not yet constituted).
  • CBIC Circular No. 224/18/2024-GST, dated 11.07.2024.

Decision – In Favour of

Disposed of as withdrawn with a substantive direction in favour of the Assessee — permitted to avail the CBIC Circular's protection pending constitution of the GST Appellate Tribunal.

Case Details

Court: High Court of Judicature at Patna
Case No.: Civil Writ Jurisdiction Case No. 466 of 2025
Coram: Hon'ble Mr. Justice P.B. Bajanthri and Hon'ble Mr. Justice S.B. Pd. Singh
Date of Order: 8th August, 2025

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