Patna High Court
M/s Nanda Devi (a Sole Proprietorship Firm)versusThe Union of India
- Decided
- Disposal
- DISPOSED
Holding
The court granted liberty to the petitioner to file an appeal under Section 112 of the Bihar GST Act, 2017, and disposed of the writ petition.
Summary
M/s Nanda Devi filed a writ petition in the Patna High Court challenging an appellate order dated 28‑02‑2024 and an ex‑parte order imposing CGST/SGST tax, interest and penalty of Rs 7,97,038, alleging that the appellate authority failed to follow the Standard Operating Procedure and did not afford a personal hearing as required under Section 75(4) of the GST Act. The petitioner also sought release of a bank account attached in the proceedings and restraining further recovery notices. The court examined the petitioner's request to invoke the remedy under Section 112 of the Bihar Goods and Services Tax Act, 2017 to contest the appellate order. The judges granted liberty to the petitioner to pursue the appeal under the said provision. Consequently, the writ petition was disposed of without further orders.
Issues considered
- Whether the appellate order dated 28‑02‑2024 can be challenged under Section 112 of the Bihar GST Act, 2017.
- Whether the failure to consider the SOP Circular and to provide a personal hearing violates procedural requirements under Section 75(4) of the CGST Act.
- Whether the attachment of the petitioner's bank account can be stayed pending the appeal.
Legislation cited
- Central Goods and Services Tax Act, 2017 — s. 74, 75(4)
Subjects
- GST
- CGST
- SGST
- writ petition
- certiorari
- Section 112
- tax assessment
- bank account attachment
- personal hearing
- procedural fairness
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.11249 of 2025
======================================================
M/s Nanda Devi (a Sole Proprietorship Firm) having its registered office at
Ward No. 30, Behind Town Hall, Gayatri Nagar, Motihari, District- West
Champaran, Bihar. through its Authorized Signatory, Mr. Nilesh Kumar
Srivastava, aged about 34 Years, S/o Shri Anil Kumar Shrivastava.
... ... Petitioner/s
Versus
1. The Union of India through the Secretary, Ministry of Finance, Department
of Revenue, having its Office at Room No. 46, North Block, P.O. and P.S.
North Block, New Delhi- 110001.
2. The Chief Commissioner, CGST and CX, Office at - C.R Building, 1st
Floor, Bir Chand Patel Path, Patna, Bihar.
3. The State of Bihar, through the Commissioner, BGST, New Secretariat,
Patna.
4. Joint Commissioner of State Tax, Motihari, Tirhut, Bihar.
5. Deputy Commissioner of State Tax, Motihari, Tirhut, Bihar.
6. Assistant Commissioner of State Tax, Motihari, Tirhut, Bihar.
7. Additional Commissioner (Appeal), Tirhut Division, Muzaffarpur.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr. Anurag Saurav, Advocate
For the Respondent/s : Mr. Sriram Krishna, Sr. Standing Counsel
Ms. Ruchi Mandal, Jr. SC, CGST
======================================================
CORAM: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH
and
HONOURABLE MR. JUSTICE ARUN KUMAR JHA
ORAL ORDER
(Per: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH)
2 22-04-2026 The present writ petition has been filed seeking the
following reliefs:-
“(i) For issuance of appropriate writs or writ
in the nature of certiorari for quashing of the order dated
28.02.2024 passed by the Additional Commissioner
(Appeal), Tirhut Division, Muzaffarpur in Appeal Case
bearing Appeal Case No. ARN No. AD100722001438N
for the financial year 2019-20 whereby and where under
Patna High Court CWJC No.11249 of 2025(2) dt.22-04-2026
2/3
the Appellate Authority upheld the order dated
09.01.2021 passed by Respondent no.6 and directed to
issue APL-IV to the petitioner and the appellate authority
passed the order without considering the Standard
Operating Procedure (S.O.P.) issued vide Circular No.
129/48/2019 (GST) dated 24.12.2019 and without
considering the fact that above mention order had been
passed without providing the personal hearing to the
petitioner, as prescribed under section 75(4) of GST Act.
(ii) For Issuance of an appropriate writ/
order/ direction for issuance of writ in the nature of
Certiorari for setting aside Ex parte Order Dated
08.01.2021 passed under section 74 of GST Act,2017 by
respondent No. 6 i.e. Assistant Commissioner of State
Tax jurisdiction, Motihari Tirhut, Motihari, Bihar,
Whereby and Where under respondent no.6 has imposed
tax of an amount of Rs. 3,87,066/-, interest of Rs.
22,906/- and Penalty of Rs. 3,87,066/- under CGST and
SGST, i.e. total amount of Rs. 7,97,038/- and the said
proceeding has been initiated by the respondent
authorities on the ground that an amount of Rs.
32,25,558 – were reflecting in GSTR7 of Government
Department on which TDS had been deducted by the
Government Authority before making payment to the
petitioner against work done and the said amount was
not mentioned in the GSTR3B Return of the petitioner
and petitioner had suppressed an amount of
Rs.32,25,558/- as Taxable Turn Over.
(iii) For setting aside Order bearing
Reference No. ZD100121007669X Dated:09.01.2021
passed under Section 74 of CGST Act,2017, whereby and
Where under an amount of Rs.7,97,038/- has been
imposed against the petitioner for the Financial Year
2019-20 as CGST & SGST, including Tax, Interest and
Penalty.
(iv) For setting aside the demand notice
issued in the Form of DRC 07 bearing Reference No.
ZD100121007669X Dated: 09.01.2021 Whereby and
Where under an amount of Rs.7,97,038/- has been
imposed as Tax, Interest and Penalty under CGST and
SGST.
(v) For Issuance of Writ in the nature of
mandamus directing the respondent authorities to release
the bank account of the petitioner already attached
during the proceeding.
Patna High Court CWJC No.11249 of 2025(2) dt.22-04-2026
3/3
(vi) For restraining the respondent authority
from issuing DRC 13 for recovery of the tax amount
through the Bank account attachment.
(vii) For issuance of an appropriate Writ(s),
order (S), and/or direction(s), as Your Lordships may
deem fit and proper in the facts and circumstances of this
case in the interest of justice.”
2. At the outset, the learned counsel for the petitioner
seeks liberty on behalf of the petitioner to challenge the
appellate order dated 28.02.2024 passed by the Additional
Commissioner (Appeal), State Tax, Tirhut Division,
Muzaffarpur by availing the remedy available under Section 112
of the Bihar Goods and Services Tax Act, 2017. Liberty, so
sought, is granted.
3. Accordingly, the present petition stands disposed
of.
(Mohit Kumar Shah, J)
(Arun Kumar Jha, J)
GAURAV S./-
U
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