Patna High Court
M/s Shreyash Krishna ConstructionversusState of Bihar
- Decided
- Disposal
- DISPOSED
Holding
The court granted the petitioner liberty to raise all grounds, including jurisdictional errors, before the appellate authority and disposed of the writ petition.
Summary
M/s Shreyash Krishna Construction filed a writ petition challenging a 5% tax imposed on affordable construction for FY 2021-22, alleging that the order violated Circular No. 03/2019-Central (Rate), was passed without notice contrary to Section 75(4) of the Central/Bihar GST Act, and lacked a digital signature required by Rule 26(3) of the GST Rules. The petition also contested the dismissal of its appeal on the ground of delay and a summary order issued by the tax authorities. The court granted the petitioner liberty to raise all grounds, including jurisdictional errors, before the appellate authority under Section 112 of the Bihar GST Act. No substantive merits of the tax orders were decided; instead, the court allowed the petition to proceed on procedural grounds. Consequently, the writ petition was disposed of after granting the requested liberty.
Issues considered
- Whether the tax order of 5% on affordable construction violates Circular No. 03/2019-Central (Rate).
- Whether the order was passed without requisite notice in violation of Section 75(4) of the Central/Bihar GST Act.
- Whether the absence of a digital signature breaches Rule 26(3) of the GST Rules.
- Whether the dismissal of the appeal for delay and the summary order are arbitrary and illegal.
- Whether the petitioner is entitled to liberty to raise all grounds before the appellate authority under Section 112 of the Bihar GST Act.
Subjects
- GST
- tax assessment
- jurisdiction
- notice requirement
- digital signature
- affordable housing
- writ petition
- Section 75(4)
- Rule 26(3)
- Section 112
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.10661 of 2025
======================================================
M/s Shreyash Krishna Construction a partnership firm having its office at 01,
Adarsh Katra, Jagdishpur, Bhagalpur, Bihar 812002 through its partner Shri.
Swayam Prakash Jhunjhunwala (Male, aged about 54 Years) son of Shri.
Balbhadra Prasad, resident of Brajdham, R.N. Agarwal Road, Jagdishpur,
Bhagalpur, Bihar - 812002.
... ... Petitioner/s
Versus
1. State of Bihar through Commissioner of State Tax, Bihar, Patna having its
office at Vikas Bhawan, Patna.
2. Addl. Commissioner of State Tax (Appeal), Bhagalpur Division, Bhagalpur.
3. Dy. Commissioner of State Tax, Bhagalpur 2, Bhagalpur, Bihar.
4. Asst. Commissioner of State Tax, Bhagalpur 2, Bhagalpur, Bihar.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr. D.V.Pathy, Sr. Adv.
Mr.Sadashiv Tiwari, Adv.
Mr. Hiresh Karan, Adv.
Ms. Shivani Dewalla, Adv.
For the State : Mr. Vikash Kumar, SC-11
======================================================
CORAM: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH
and
HONOURABLE MR. JUSTICE ARUN KUMAR JHA
ORAL ORDER
(Per: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH)
2 29-04-2026 The present writ petition has been filed seeking the
following reliefs:-
“1(i). The order dated 31.08.2023 (as contained in
Annexure-P 3 series), passed by the respondent no. 4 for
the Financial Year 2021-22, subjecting affordable
construction to tax at the rate of 5% de hors the
Circular No. 03/2019-Central (Rate), dated 29.03.2019,
Patna High Court CWJC No.10661 of 2025(2) dt.29-04-2026
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issued by the Central Board of Indirect Taxes and also
without issue of notice before passing an adverse order
in contravention of the statutory provisions as contained
in section 75(4) of the Central/Bihar Goods and
Services Tax Act, 2017 (hereinafter called the Act) and
also without a digital signature as mandated in Rule 26
(3) of the Central/Bihar Goods and Services Tax Rules,
2017 (hereinafter called the Rules) being wholly
arbitrary, illegal and without jurisdiction be set aside
and quashed.
(ii). The order, passed by the respondent no. 2
dismissing the appeal in limine only on the ground of
delay in filing the appeal being wholly arbitrary, illegal
and without jurisdiction, be set aside and quashed.
(iii). The summary of the order dated 31.08.2023 in
Form GST DRC-07 (as contained in Annexure-P 3
series) for the Financial Year 2021-22, issued by the
respondent no.3 on the basis of the order of assessment
be set aside and quashed.
2. At the outset, the learned Senior Counsel for the petitioner
seeks liberty on behalf of the petitioner to challenge the
appellate order dated 1.7.2024, passed by the Learned
Additional Commissioner of State Tax (Appeal), Bhagalpur
Division, Bhagalpur, by availing the remedy provided for under
Section 112 of the Bihar Goods and Services Tax Act, 2017,
however he seeks liberty to raise all such grounds, as are
Patna High Court CWJC No.10661 of 2025(2) dt.29-04-2026
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available under the law including the issue of jurisdictional error
in the assessment order itself. Liberty, so sought, is granted.
3. Accordingly, the present writ petition stands disposed of.
(Mohit Kumar Shah, J)
( Arun Kumar Jha, J)
Ajay/-
U
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