Patna High Court
M/S Bimal Kishore GautamversusThe Union of India
- Decided
- Disposal
- DISMISSED
Holding
The writ petition is dismissed, but the petitioner is granted liberty to challenge the order by filing an appeal under the Central GST Act.
Summary
M/s Bimal Kishore Gautam filed a writ petition in the Patna High Court challenging a penalty of Rs.20,58,571 imposed by the Assistant Commissioner, Central GST and Central Excise, Purnea, under section 78 of the Finance Act read with section 174 of the Central GST Act, 2017, along with additional penalties under section 77(1)(a) of the Finance Act and for failure to file required documents and returns. The petitioner also contested a show‑cause notice dated 12.08.2022 demanding the same penalty and claimed that, as a sub‑contractor, it is exempt from service tax under Section 66B of the Finance Act as per Notification No. 25/2012. The court heard arguments from counsel for both sides. It held that the petitioner is free to challenge the order by filing an appeal under the provisions of the Central GST Act, but it did not interfere with the penalty order itself. Consequently, the writ petition was dismissed, with liberty granted to the petitioner to pursue the matter through the appropriate appellate route.
Issues considered
- Whether the penalty imposed under section 78 of the Finance Act read with section 174 of the Central GST Act, 2017 is legally valid.
- Whether the show‑cause notice demanding the penalty is procedurally and substantively correct.
- Whether the petitioner, as a sub‑contractor, is exempt from service tax under Section 66B of the Finance Act (Notification No. 25/2012).
Legislation cited
- Central Goods and Services Tax Act, 2017 — s. 174
- Finance Act — s. 77(1)(a), 78
Subjects
- GST
- penalty
- service tax exemption
- sub‑contractor
- writ petition
- certiorari
- Finance Act
- appeal
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.14115 of 2025
======================================================
M/S Bimal Kishore Gautam (A proprietorship Firm) having registered address
at Ward No.05, Professor colony, Madhepura-852115, Bihar, through its
proprietor Bimal Kishore Gautam @ Bimal Kishore (Male), aged about 52
years, Son of Raj Kishore Prasad Yadav, resident of Ward No.05, Professor
Colony, Madhepura, P.S.-Madhepura, District- Madhepura, Bihar-852113.
... ... 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 (India).
2. The Commissioner (Appeal) Cenral GST and Central Excise Patna 2nd
Floor, C.R. Building (Annexi) Veer Chand Patel Path, Patna-800001, Bihar
(India).
3. The Assistant Commissioner, Central GST and Central Excise Division,
Purnea having its office At-New Sipahi Tola, Maranga Road, Purnea-854301
(Bihar).
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr.Surendra Singh, Adv.
For the Respondent/s : Mr.Anshuman Singh, Sr. SC, CGST & CX
Mrs. Ruchi Mandal, Jr. SC, CGST & CX
======================================================
CORAM: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH
and
HONOURABLE MR. JUSTICE RAJ KUMAR
ORAL ORDER
(Per: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH)
2 17-06-2026 The present writ petition has been filed seeking the
following reliefs:-
“1(i). To issue an appropriate writ preferably in the
nature of certiorari for setting aside the order bearing
C.No.V(133)01/SCN/PUR DIV/Bimal Kishore/
2022/189/93 dated 25.01.2024 (Annexure-P7), passed
Patna High Court CWJC No.14115 of 2025(2) dt.17-06-2026
2/3
by the Assistant Commissioner Central GST and Central
Excise, Division Purnea whereby and whereunder
penalty of Rs.20,58,571/-has been imposed upon the
petitioner under section 78 of the Finance Act read with
section 174 of the Central GST Act, 2017 and further
penalty of Rs.10,000/- has been imposed upon the
petitioner under section 77(1)(a) of the Finance Act read
with section 174 of Central GST Act 2017 along with
penalty of Rs. 82,600/- for failure to submission of
requisite documents compelled with imposition of
penalty of Rs.10,000/- for failure to file statutory ST-3
Return.
(ii). To issue an appropriate writ preferably in the nature
of certiorari for notice bearing
C.No.V(133)01/SCN/PUR DIV/Bimal
Kishore/2022/1171/dated 12.08.2022, issued under the
signature of Assistant Commissioner, Central GST and
Central Excise Division Purnea by which demand of
Rs. 20,58,571/- has been made from the petitioner and
show cause notice has been issued alleging non-
compliance of several provisions under the Finance Act
and CGST Act.
(iii). To hold and declare that the petitioner being sub-
contractor is exempted from service tax under Section
66B of the Finance Act under Notification No. 25/2012
service tax dated 20.06.2012, issued under the signature
of Under Secretary to the Government of India, Ministry
of Finance (Department of Revenue).”
2. After some arguments, the learned counsel for the
Patna High Court CWJC No.14115 of 2025(2) dt.17-06-2026
3/3
petitioner seeks liberty on behalf of the petitioner to challenge
the order dated 25.1.2024, passed by the Assistant
Commissioner, Central GST and Central Excise Division-
Purnea, by filing appropriate appeal as per the provisions
contained under the Central Goods and Services Tax Act, 2017. Liberty,
so sought, is granted.
3. Accordingly, the present writ petition stands dismissed.
(Mohit Kumar Shah, J)
(Raj Kumar, J)
Ajay/-
U
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