Patna High Court
M/s Dynamic Awas Private LimitedversusThe Union of India
- Decided
- Disposal
- DISPOSED
Holding
The court held that the petitioner must first seek redress before the GST tribunal under Section 112 of the Bihar GST Act, and therefore the writ petition is disposed.
Summary
M/s Dynamic Awas Private Ltd filed a writ petition in the Patna High Court challenging ex‑parte orders dated 28‑04‑2024 that imposed CGST, SGST, interest and penalties of over Rs 2 crore, alleging that the assessing authority ignored documents on the GST portal and acted on a presumption. The petition sought certiorari to quash the orders, a stay of proceedings, a declaration, and release of a bank account attached by the tax authorities. The court examined whether the High Court could entertain such tax assessment orders and whether the petitioner should first approach the appropriate GST tribunal under Section 112 of the Bihar GST Act. The judges granted the petitioner liberty to approach the tribunal and disposed of the writ petition without further relief. Consequently, the petition was dismissed, directing the petitioner to seek remedy before the tribunal.
Issues considered
- Whether the ex‑parte orders imposing tax, interest and penalty under CGST/SGST can be quashed by a writ of certiorari.
- Whether the High Court can stay the tax proceedings and release the attached bank account.
- Whether the appropriate remedy is to approach the GST tribunal under Section 112 of the Bihar Goods and Services Tax Act, 2017.
- Whether the assessing authority failed to consider documents available on the GST portal.
Legislation cited
- Bihar Goods and Services Tax Act, 2017 — s. 112, 73, 79
Subjects
- GST
- tax assessment
- ex‑parte order
- certiorari
- writ jurisdiction
- bank attachment
- stay of proceedings
- Section 112
- Bihar GST Act
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.13677 of 2025
======================================================
M/s Dynamic Awas Private Limited having its registered office at - Ground
Floor, Smriti Complex, DVC Chowk, New Jakkanpur, Patna through its
Authorized Signatory Mr. Shiv Shankar aged about 50 years (M), S/o
Dayaram Sah, R/O North Patel Nagar, Road No. 08, Near Baba Chowk, P.S.
Phulwari, Dist.-Patna.
... ... 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 Commissioner BGST, New Secretariat, Patna.
4. Joint Commissioner of State Tax, Special Circle, District-Patna, Bihar.
5. Deputy Commissioner of State Tax, Special Circle, District-Patna, Bihar.
6. Assistant Commissioner of State Tax, Bettiah Circle, District-West
Champaran, Bihar.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr.Sharda Raje Singh, Advocate
Mr. Anurag Saurav, Advocate
Mr. Abhishek Kumar, Advocate
Mr. Ankesh Bibhu, Advocate
For the Respondent/s : Government Pleader- 07
======================================================
CORAM: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH
and
HONOURABLE MR. JUSTICE RAJ KUMAR
ORAL ORDER
(Per: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH)
2 01-07-2026 The present writ petition has been filed seeking the
following reliefs:-
“1.(i) For issuance of an appropriate
writ/order/direction in the nature of Certiorari for
quashing of the Ex-Parte Order dated 28.04.2024
passed by Deputy Commissioner of State Tax
Patna High Court CWJC No.13677 of 2025(2) dt.01-07-2026
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jurisdiction, Special Circle under section 73 of BGST
Act, whereby and whereunder respondent authority
proceeded ex-parte against the petitioner and imposed
Tax, Interest and Penalty of an amount of
Rs.49,94,309/-, Rs.45,69,793/- and Rs. 4,99,431/- under
CGST and SGST respectively.
(ii) For Issuance of an appropriate writ/order/direction
in the nature of Certiorari for Quashing of the Ex-Parte
Order bearing Reference No.ZD100424035768H dated
28.04.2024 passed by Deputy Commissioner of State
Tax jurisdiction, Special Circle under section 73 of the
BGST Act, whereby and whereunder under the
respondent authority proceeded ex-parte against the
petitioner and imposed Tax, interest and penalty of a
total amount of Rs. 2,01,27,066/- under CGST and
SGST respectively.
(iii) For setting aside the demand notice issued in the
Form of DRC 07 bearing Reference No.
ZD100424035768H dated 28.04.2024, whereby and
whereunder a Demand of Rs.2,01,27,066.00/- has been
imposed as Tax, Interest and Penalty under CGST &
SGST.
(iv) For further issuance of writ or order or a direction
restraining the respondents from taking any coercive
action against the petitioner in terms of section 79 of
BGST Act, 2017 for recovery of the amount of tax,
interest and penalty determine in terms of impugned
order dated 28.04.2024 and Demand Notice in the form
of DRC-07 dated 28.04.2024.
(v) For granting interim protection/stay on the entire
proceeding till the disposal of the present writ
Patna High Court CWJC No.13677 of 2025(2) dt.01-07-2026
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application.
(vi) For further holding and a declaration that the
respondent authority has not considered any documents
already available on the GST Portal like annual return
for the assessment of tax and impugned order has been
passed on a calculation based on presumption of
Assessing Officer with a preconception to impose
liability of tax, Interest and penalty.
(vii) For releasing the Bank Account of the petitioner
which has been attached by the Respondent
Authorities.”
2. At the outset, the Ld. Counsel for the petitioner seeks
liberty on behalf of the petitioner to challenge the order dated
29.04.2025 passed by the Ld. Additional Commissioner
(Appeal), State Tax, Central Division, Patna,
by approaching learned Tribunal 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)
(Raj Kumar, J)
S.Sb/-
U
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