Created by Fuzzy Cloud

Patna High Court

Asma Automobiles Private LimitedversusState of Bihar

Decided
Disposal
DISPOSED

Holding

If the assessment order has been withdrawn, the amount recovered must be refunded to the petitioner.

Summary

The petitioner Asma Automobiles Private Ltd filed a writ petition challenging a GST assessment order dated 10 August 2019 issued by the Assistant Commissioner of State Tax, Purnea, which levied tax of Rs 32,55,447 and interest of Rs 48,831 for June 2019. The petitioner contended that the notice was served only on the GST portal, violating Section 169 of the Bihar GST Act, and that the order amounted to double taxation and was contrary to the CGST Rules. The petitioner also claimed that the assessment order had been withdrawn and therefore sought a refund of the amount recovered. The High Court examined the service requirements under the Act and Rules and considered the claim of withdrawal. The Court held that if the order was indeed withdrawn, the amount recovered must be refunded, and otherwise disposed of the petition without granting the reliefs sought.

Issues considered

  • Whether the GST assessment order dated 10‑08‑2019 was validly served under Section 169 of the Bihar Goods and Services Tax Act, 2017
  • Whether the order contravenes the Central Goods and Services Tax Rules, 2017 on service of notice
  • Whether the assessment order has been withdrawn and, if so, whether a refund of the recovered tax and interest is warranted

Legislation cited

Subjects

  • GST
  • assessment order
  • service of notice
  • double taxation
  • refund
  • writ petition
  • Bihar GST Act
  • CGST Rules

Judgment

                      IN THE HIGH COURT OF JUDICATURE AT PATNA
                               Civil Writ Jurisdiction Case No.14265 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 Advocate 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 10.08.2019 (as contained in
                                  Annexure -P1 series) passed by the respondent no.2
                                  for month of June 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
                                  32,55,447 and interest amounting to 48,831 each
Patna High Court CWJC No.14265 of 2025(2) dt.29-04-2026
                                           2/3




                       under CGST and SGST totaling 66,08,559 on the
                       solitary ground of non-filing of return in GSTR 3B
                       (in view of filing of return in Form GSTR 3B on
                       03.09.2019) 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 June 2019.
                       (iii) The order dated 10.08.2019 (as contained in
                       Annexure P1 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

          10.08.2019/12.02.2020,           passed         by   the   Deputy/Assistant
         Patna High Court CWJC No.14265 of 2025(2) dt.29-04-2026
                                                    3/3




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

                   of June/December, 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


Continue reading with your account

Sign in to read the full judgment. It’s free.

Sign in to read

Checking your session…

For a signed copy suitable for filing, refer to the court's website.