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Patna High Court

M/s Gajendra IndustriesversusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

The High Court held that the petitioner may pursue the remedy under Section 112 of the Bihar Goods and Services Tax Act, 2017 and disposed of the writ petition.

Summary

M/s Gajendra Industries filed a writ petition challenging the rejection of its tax appeal on the ground of delay and the issuance of a show‑cause notice and demand under Section 50(3) of the CGST/BGST Act. The petition sought certiorari to quash the appellate order, the show‑cause notice, and the demand, arguing violation of natural justice and lack of legal basis. The court allowed the petitioner liberty to contest the appellate order by invoking the remedy under Section 112 of the Bihar Goods and Services Tax Act, 2017. No substantive hearing on the merits was recorded. Consequently, the writ petition was disposed of, directing the petitioner to pursue the statutory remedy.

Issues considered

  • Whether the appellate order rejecting the appeal on the ground of delay is violative of law and natural justice
  • Whether the show‑cause notice and demand under Section 50(3) of the CGST/BGST Act are legally valid
  • Whether denial of an opportunity of hearing vitiates the proceedings
  • Whether the petitioner is entitled to invoke the remedy under Section 112 of the Bihar GST Act, 2017

Legislation cited

Subjects

  • GST
  • tax appeal
  • writ petition
  • certiorari
  • delay in filing appeal
  • section 112
  • section 50(3)
  • section 107(4)
  • natural justice

Judgment

                     IN THE HIGH COURT OF JUDICATURE AT PATNA
                               Civil Writ Jurisdiction Case No.12716 of 2025
                 ======================================================
                 M/s Gajendra Industries having its registered office at Parsa, Hathauri,
                 Samastipur, Bihar- 847105, through its authorised Signatory, Abhishek
                 Kumar, aged about 36 years (male), S/o- Sunil Kumar Singh, resident of -
                 Ward no. 22, Indupur, Barahaiya, P.S.- Barahaiya, District- Lakhisarai
                 (Bihar)- 811302.

                                                                       ... ... Petitioner/s
                                                  Versus
           1.    The State of Bihar through the Principal Secretary, Commercial Taxes
                 Department, Government of Bihar.
           2.    The Principal Secretary cum Commissioner, State Tax, Commercial Taxes
                 Department, Government of Bihar.
           3.    The Additional Commissioner (Appeal), State Tax, Darbhanga Division,
                 Darbhanga.
           4.    The Joint Commissioner, State Tax, Samastipur Circle, Darbhanga, Bihar.
           5.    The Deputy Commissioner, State Tax, Special Circle, Patna, Bihar.

                                                           ... ... Respondent/s
                 ======================================================
                 Appearance :
                 For the Petitioner/s   :     Mr.Rohit Singh, Advocate
                 For the Respondent/s   :     Mr.Government Pleader (07)
                 ======================================================
                 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:-

                                 “i. To issue an appropriate writ, order or direction
                          in the nature of certiorari for quashing the Appeal
                          No.AD1012240042135 dated 10.02.2025 issued by the
                          Additional Commissioner (Appeal), State Tax, Darbhanga
                          Division, Darbhanga, whereby and whereunder
                          Petitioner's Appeal has been rejected on the ground of
                          delay in submission of the application of an Appeal.
                                 ii. This Hon'ble Court may adjudicate and hold that
                          the order dated 10.02.2025 passed by the Additional
Patna High Court CWJC No.12716 of 2025(2) dt.29-04-2026
                                           2/3




                  Commissioner (Appeal), State Tax, Darbhanga Division
                  is completely without the provisions of law and is not
                  tenable in law, and is a fit case to be set aside.
                         iv. To issue an appropriate writ, order, or direction
                  in the nature of certiorari for quashing the Order u/s 73
                  bearing reference no. ZD100824042801S dated
                  29.08.2024, passed by Joint Commissioner, State Tax,
                  Samastipur, Darbhanga, Bihar whereby and whereunder,
                  to the tune of Rs. 15,46,230/-(Fifteen Lakh Forty Six
                  Thousand Two Hundred and Thirty) is levied under the
                  grounds of Short Payment of Tax under section 50(3) of
                  under Section 50(3) of the CGST/BGST Act,2017.
                         v. To issue an appropriate writ, order, or direction
                  in the nature of certiorari for quashing the Show Cause
                  Notice dated 31.05.2024, issued by Joint Commissioner.
                  State Tax, Samastipur, Darbhanga, Bihar whereby and
                  whereunder, to the tune of Rs. 15,46,230/- (Fifteen Lakh
                  Forty Six Thousand Two Hundred and Thirty) for Short
                  Payment of Tax was ascertained under section 50(3) of
                  the CGST/BGST Act,2017.
                         v. For issuing an appropriate writ for seeking
                  direction to the respondent to hear the case after
                  condonation of delay in filing Appeal.
                         vi. This Hon'ble Court may adjudicate and hold that
                  Show Cause Notice dated 31.05.2024 issued by the Joint
                  Commissioner, Samastipur is completely without the
                  provisions of law and is not tenable in law and is a valid
                  and fit to be set aside.
                         vii. This Hon'ble Court may adjudicate and hold
                  that the demand raised by the respondent authorities in
                  terms of DRCOI notice, cannot be based on the
                  conjectures and surmises.
                         viii. This Hon'ble Court may adjudicate and hold
                  that merely on grounds of delay in submission of
                  application of an Appeal under section 107(4) has to be
                  necessarily preceded with an opportunity of hearing and
                  denial of appeal merely on the grounds of delay vitiates
                  the entire proceeding.
            Patna High Court CWJC No.12716 of 2025(2) dt.29-04-2026
                                                       3/3




                                     ix. During the pendency of this writ application the
                              Respondents may be directed not to take any coercive
                              steps against the petitioner.”

                                  2. After some arguments, the learned counsel for the

                      petitioner seeks liberty on behalf of the petitioner to challenge

                      the appellate order dated 10.02.2025, passed by the learned

                      Additional Commissioner (Appeal) of State Tax, Darbhanga

                      Division, Darbhanga by availing the remedy provided for under

                      Section 112 of the Bihar Goods and Services Tax Act, 2017.

                      Liberty so sought is granted.

                                  3. The writ petition stands disposed of.



                                             (Mohit Kumar Shah, J)


                                                (Arun Kumar Jha, J)
kanchan/-

U


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