Patna High Court

Panacea Biotec Ltd.,versusThe State of Bihar

Decided: 4 February 2026
Disposal: DISPOSED
Bench: MOHIT KUMAR SHAH ALOK KUMAR PANDEY

Holding

The court ordered the Joint Commissioner to dispose of the refund applications within four weeks and to consider the payment of interest under Section 70.

Summary

Panacea Biotec Ltd. filed refund applications under Section 68 of the Bihar Value Added Tax Act, 2005 for the years 2015-16 and 2016-17. The petitioner alleged that the Joint Commissioner of State Tax (Respondent No.4) had failed to dispose of these applications. The petitioner sought a writ directing the respondent to dispose of the applications within a stipulated period and to consider the payment of interest under Section 70. The State argued that the applications should be disposed of within the time prescribed by the court. The High Court directed the Joint Commissioner to dispose of the refund applications within four weeks and to examine the issue of interest, thereby disposing of the writ petition.

Issues considered

Whether the Joint Commissioner of State Tax is obligated to dispose of refund applications filed under Section 68 of the Bihar VAT Act within a reasonable time.
Whether interest under Section 70 of the Bihar VAT Act is payable on delayed tax refunds.

Legislation cited

Bihar Value Added Tax Act, 2005 — s. 68, 70

Subjects

VAT refund
Section 68
Section 70
Commercial Taxes
Writ jurisdiction
High Court
Interest on tax refund

Judgment

                      IN THE HIGH COURT OF JUDICATURE AT PATNA
                              Civil Writ Jurisdiction Case No.10157 of 2025
                 ======================================================
                 Panacea Biotec Ltd., having its registered office at Ambala-Chandigarh
                 Highway, Lalru 140501, Punjab and inter-alia, a place of business at 1 Floor,
                 Gautam Budh College Campus, Sandalpur, Kumhrar, Patna-800016 Through
                 its Authorised Representative Mr. Vishal Jain, Male, aged about 44 years S/o
                 Late Sudesh Kumar Jain, resident of 201, Pushpanjali Plaza, Basant Vihar
                 Colony, opposite Laxmi Complex, Boring Road, Patna-800001


                                                                            ... ... Petitioner/s
                                               Versus
           1.    The State of Bihar through The Principal Secretary, Commercial Taxes
                 Department, Patna, Bihar.
           2.    The commissioner of State Tax, Commercial Taxes Department, Patna,
                 Bihar.
           3.    The Deputy Commissioner of State Tax, Commercial Taxes Department,
                 North Circle, Patna, Bihar.
           4.    The Joint Commissioner of State Tax, Commercial Tax Department, North
                 Circle, Anta Ghat, Patna, Bihar.
           5.    The Senior Treasury Officer, Patna Treasury Office, Patna, Bihar.
           6.    The Branch Manager, State Bank of India, Judges Court Road Branch,
                 Patna.

                                                           ... ... Respondent/s
                 ======================================================
                 Appearance :
                 For the Petitioner/s   :      Mr. Naman Nayak, Advocate
                                               Mr. Rajesh Mahna, Advocate
                 For the Respondent/s   :      Mr. Vivek Prasad, GP-7
                                               Mr. Sanjiv Kumar, Advcoate
                                               Mr. Santosh Kumar Singh, Advocate, GA 07
                 ======================================================
                 CORAM: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH
                         and
                         HONOURABLE MR. JUSTICE ALOK KUMAR PANDEY
                                       ORAL ORDER

                 (Per: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH)

2   04-02-2026                     The limited prayer made in the present writ
Patna High Court CWJC No.10157 of 2025(2) dt.04-02-2026
                                           2/3




          petition is to direct the respondent authorities to dispose

          of the applications filed by the petitioner for refund in

          form A-VIII under Section 68 of the Bihar Value Added

          Tax Act, 2005 for the period 2015-16 and 2016-17.

                      2. It is submitted by the learned counsel for the

          petitioner that the Joint Commissioner of State Tax,

          Commercial Tax Department, North Circle, Anta Ghat,

          Patna, Bihar i.e. the Respondent No. 4 is not taking any

          steps to dispose off the aforesaid applications filed by

          the petitioner, hence he be directed to dispose off the

          same within a stipulated time frame.

                      3. The learned counsel for the State submits

          that the aforesaid applications filed by the petitioner

          shall be disposed off within the time prescribed by this

          Court.

                      4. Accordingly, we direct the Respondent No. 4

          to dispose off the aforesaid applications filed by the

          petitioner for refund within a period of four weeks from

          today. The Respondent No. 4 shall also examine the

          issue of payment of applicable interest as per the
         Patna High Court CWJC No.10157 of 2025(2) dt.04-02-2026
                                                    3/3




                   provision contained in Section 70 of the Bihar Value

                   Added Tax Act, 2005.

                               5. Accordingly, the present writ petition stands

                   disposed off.


                                          (Mohit Kumar Shah, J)


                                          (Alok Kumar Pandey, J)
alok/-

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