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Patna High Court

M/s. A.K. HandloomversusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

The court granted liberty to challenge the impugned order under Section 112 of the Bihar GST Act and disposed of the writ petition.

Summary

M/s A.K. Handloom filed a writ petition challenging two tax orders that directed it to pay Rs 9,35,122 as tax, interest and penalty. The petitioner argued that the orders, especially the one dated 13‑07‑2024 by the State Tax Additional Commissioner (Appeal), were illegal because they were passed without considering its reply. The petition sought to set aside both orders and to stay recovery of the amount pending the petition. The court granted the petitioner liberty to invoke the remedy under Section 112 of the Bihar Goods and Services Tax Act, 2017, to contest the order. No further substantive hearing was recorded and the writ petition was disposed of.

Issues considered

  • Whether the order of the State Tax Additional Commissioner (Appeal) dated 13‑07‑2024 is valid despite the petitioner’s reply not being considered.
  • Whether the order directing payment of Rs 9,35,122 including interest and penalty is illegal.
  • Whether the petitioner is entitled to invoke the remedy under Section 112 of the Bihar Goods and Services Tax Act, 2017.

Legislation cited

Subjects

  • GST
  • tax assessment
  • penalty
  • interest
  • writ petition
  • Section 112
  • Bihar
  • tax recovery
  • administrative order

Judgment

                      IN THE HIGH COURT OF JUDICATURE AT PATNA
                                Civil Writ Jurisdiction Case No.14576 of 2025
                 ======================================================
                 M/s. A.K. Handloom through its Proprietor Rajesh Kumar, aged about 45
                 years, male, Son of Mahendra Jha, Gandhi Chowk, Sitamarhi, Permanent
                 resident of Mahanth Sah Chowk Gudari Bazar, Ward No. 10, Police Station-
                 Sitamarhi, District- Sitamarhi.

                                                                           ... ... Petitioner/s
                                                   Versus
           1.    The State of Bihar through Chief Secretary, Government of Bihar, Patna.
           2.    The Secretary-cum-Commissioner, Commercial Tax, Bihar, Patna.
           3.    The State Tax Additional Commissioner (Appeal), Tirhut Division,
                 Muzaffarpur.
           4.    The State Tax Joint Commissioner, Sitamarhi Division, Sitamarhi.
           5.    The Assistant Commissioner of State Tax, Sitamarhi Division, Sitamarhi.

                                                           ... ... Respondent/s
                 ======================================================
                 Appearance :
                 For the Petitioner/s   :      Mr. Uday Kumar,Adv.
                                               Mr. Abhitabh Kumar, Adv.
                 For the Respondent/s   :      Mr. Yogendra Pd. Sinha, AAG 7
                                               Mr. Rajeev Kumar Sinha, AC to AAG 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   13-05-2026                     The present writ petition has been filed seeking the

                   following reliefs:-

                            “(i)For issuance of an appropriate writ/order or direction to
                            setting aside the order of State Tax Additional Commissioner
                            (Appeal), Tirhut Division, Muzaffarpur, dated 13.07.2024
                            whereby and where under the Learned Additional
                            Commissioner of State Tax (Appeal), Muzaffarpur was passed
                            order against the petitioner and affirming the order dated
                            08.02.2021 passed by the Assistant Commissioner of State
                            Tax, Sitamarhi Division, Sitamarhi in which the petitioner was
                            directed to make payment of Rs.9,35,122=00 including Rs.
                            2,13,516=00 in the account of interest and Rs. 65,000=00 in
                            the account of penalty which is patently illegal order passed
            Patna High Court CWJC No.14576 of 2025(2) dt.13-05-2026
                                                       2/2




                              without considering the reply of the petitioner.
                                         (ii) For further setting aside the order dated
                              08.02.2021 passed by the Assistant Commissioner of State
                              Tax, Sitamarhi Division, Sitamarhi by which the petitioner
                              was directed to make payment of Rs. 9,35,122=00 including
                              interest and penalty.
                                         (iii) For further directing to the respondent
                              authority not to recover the disputed amount of Rs.
                              9,35,122=00 till the disposal of the present application.”

                                  2. At the outset, the learned counsel for the petitioner

                      seeks liberty on behalf of the petitioner to challenge the

                      impugned order dated 13.07.2024, passed by the learned

                      Additional Commissioner (Appeal) of State Tax, Tirhut

                      Division, Muzaffarpur by availing the remedy provided for

                      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)


                                               ( Arun Kumar Jha, J)
kanchan/-

U


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