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Patna High Court

Asma Automobiles Private LimitedversusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

If the assessment order has been withdrawn, the amount recovered must be refunded to the petitioner.

Summary

Asma Automobiles Private Limited filed a writ petition challenging a GST assessment order dated 12 October 2019 issued by the Assistant Commissioner of State Tax, Purnea, under the Bihar GST Act. The petitioner alleged that the order, which levied CGST, SGST and cess of a total of ₹73,21,017, was served only on the portal contrary to Section 169 of the Act and was based on a purported non‑filing of GSTR‑3B, despite the return being filed on 4 November 2019. The petitioner sought quashing of the order and a refund of the tax collected. The respondent contended that the assessment order had been withdrawn, and therefore the tax recovered should be refunded. The High Court held that if the order was indeed withdrawn, the recovered amount must be refunded to the petitioner, and directed that the refund be effected if not already credited. Consequently, the writ petition was disposed of.

Issues considered

  • Whether service of a GST assessment order solely on the portal violates Section 169 of the Bihar GST Act.
  • Whether the tax demand under Section 62(2) is valid when the return was filed after the assessment period.
  • Whether the assessment order should be set aside and quashed on the ground of double taxation and procedural impropriety.
  • Whether a refund is payable when the assessment order has been withdrawn.

Legislation cited

Subjects

  • GST
  • assessment order
  • service of notice
  • double taxation
  • refund
  • Section 169
  • Section 62
  • writ petition
  • High Court
  • Bihar

Judgment

                      IN THE HIGH COURT OF JUDICATURE AT PATNA
                              Civil Writ Jurisdiction Case No.14254 of 2025
                 ======================================================
                 Asma Automobiles Private Limited a Company registered Under Companies
                 Act, 1956 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.    The 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 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 by the petitioner

                   seeking the following reliefs:-

                                  “1.(i) The order dated 12.10.2019 (as contained in
                                  Annexure -P1 series) passed by the respondent no.2
                                  for month of August 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
                                  33,81,976 each under CGST and SGST and cess
Patna High Court CWJC No.14254 of 2025(2) dt.29-04-2026
                                           2/3




                       amounting to Rs. 5,57,064 totaling ₹ 73,21,017 on
                       the solitary ground of non-filing of return in GSTR
                       3B (in view of filing of return in Form GSTR 3B on
                       04.11.2019) 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 August 2019.
                       (iii) The order dated 12.10.2019 (as contained in
                       Annexure P1 series) passed 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

          11.10.2019/12.10.2019,           passed         by   the   Deputy/Assistant
         Patna High Court CWJC No.14254 of 2025(2) dt.29-04-2026
                                                    3/3




                   Commissioner of State Tax, Purnea Circle, Purnea for the month

                   of August, 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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