Patna High Court
Asma Automobiles Private LimitedversusState of Bihar
- Decided
- Disposal
- DISPOSED
Holding
The Court disposed of the writ petition, directing that the tax recovered be refunded if the assessment order was indeed withdrawn.
Summary
Asma Automobiles Private Limited filed a writ petition challenging a GST demand order dated 12‑12‑2019 issued by the Assistant Commissioner of State Tax, Purnea, alleging that the notice was served only on the portal in violation of Section 169 of the Bihar GST Act and that the demand of ₹1,03,31,937 was illegal, amounting to double taxation. The petitioner also claimed that the assessment order dated 12‑01‑2021 had been withdrawn and therefore sought a refund of the tax recovered. The respondents contended that the demand was lawful under the Act and Rules. The Court examined the service of notice, the applicability of Section 62(2) of the Bihar GST Act, and the effect of the alleged withdrawal of the assessment order. It held that if the assessment order was indeed withdrawn, the recovered amount must be refunded to the petitioner. Accordingly, the writ petition was disposed with a direction for refund, subject to verification of the withdrawal.
Issues considered
- Whether service of the GST demand order solely on the portal violates Section 169 of the Bihar Goods and Services Tax Act, 2017.
- Whether the tax demand contravenes Section 62(2) of the Bihar GST Act and amounts to double taxation under Article 265 of the Constitution.
- Whether the petitioner is entitled to a refund of tax recovered after the assessment order dated 12‑01‑2021 was withdrawn.
Legislation cited
- Central Goods and Services Tax Rules, 2017 — s. Rule 100(2), Rule 142(1)(a)
Subjects
- GST
- tax demand
- service of notice
- double taxation
- refund
- assessment order withdrawal
- writ petition
- Bihar GST Act
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.14210 of 2025
======================================================
Asma Automobiles Private Limited a company registered under Companies
Act, 1956 having its office having its office at NH 31, Jail Chowk, Purnea-
854301, Bihar 852123 through its Director Sahir Khan (Male, aged about 29
years) son of Irshad Ahmad Khan, resident of 107, Road No. 4, Near Park,
Sampatchak, Rajendra Nagar, Patna, Bihar 800016.
... ... Petitioner/s
Versus
1. State of Bihar through Commissioner of State Tax, Bihar, Patna having its
office at Kar Bhawan, Birchand Patel Marg, Patna 800001.
2. Asst. Commissioner of State Tax, Purnea, Circle 1, Purnea, Bihar.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr. D.V. Pathy, Sr. Advocate
Mr.Sadashiv Tiwari, Advocate
Mr. Hiresh Karan, Advocate
Ms. Shivani Dewalla, Advocate
For the Respondent/s : Government Pleader-7
======================================================
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 by the petitioner
seeking the following reliefs:-
“1(i) The order dated 12.12.2019 (as contained in
Annexure -P1 series) passed by the respondent no.2
for month of October 2019 falling in the Financial
Year 2019-20 in Form GST DRC - 07 under section
73 of the Bihar Goods and Services Tax Act, 2017
(hereinafter called the Act) served only on the portal
and not served by other modes of service in terms of
section 169 of the Act levying tax, amounting to
43,68,668 each under CGST and SGST and cess
Patna High Court CWJC No.14210 of 2025(2) dt.29-04-2026
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amounting to 15,94,599 totaling₹ 1,03,31,937 on the
solitary ground of non-filing of return in GSTR 3B
(in view of filing of return in Form GSTR 3B on
31.12.2019) and payment of tax and late fee within a
period of 30 days of the order in view of statutory
provisions contained in section 62 (2) of the Act and
also interest and being contrary to the said statutory
provision and also Article 265 of the Constitution of
India and the principles of double taxation be set
aside and quashed.
(ii) The respondent no. 2 be directed to refund the
amount of tax collected by debiting the electronic
credit ledger to recover the tax determined by him
under section 62 of the Act after filing of the return
for month of October 2019.
(iii) The order dated 12.12.2019 (as contained in
Annexure P 1 series) issued by the respondent no.2
in Form GST DRC-07 in terms of Rule 100 (2) and
142 (1) (a) of the Central Goods and Services Tax
Rules, 2017 (hereinafter called the Rules) for the Tax
Period 2019-20 on the basis of a summary of show
cause notice shown only on the portal and not served
by other modes of service in terms of section 169 of
the Act being contrary to the Rules be set aside and
quashed.”
2. At the outset, the Ld. Senior Counsel for the petitioner
has submitted, by referring to the rejoinder affidavit filed in the
present case, that the assessment order dated 12.01.2021, passed
by the Deputy/Assistant Commissioner of State Tax, Purnea
Patna High Court CWJC No.14210 of 2025(2) dt.29-04-2026
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Circle, Purnea for the month of October, 2019 falling in the
financial year 2019-20 has stood withdrawn, hence the amount
which has been recovered by the respondents be directed to be
refunded back in case the same has not yet been automatically
credited in the account of the petitioner, as has been averred by
the Ld. Counsel for the respondents.
3. Having regard to the facts and circumstances of the case,
we deem it fit and proper to dispose of the present writ petition
with a direction that in case the averment of the Ld. Sr. Counsel
for the petitioner to the effect that the assessment order in
question has stood withdrawn, is correct, the amount so
recovered be refunded back to the petitioner in case the same
has not yet been credited in favour of the petitioner.
4. Accordingly, the writ petition stands disposed of.
(Mohit Kumar Shah, J)
( Arun Kumar Jha, J)
S.Sb/-
U
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