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Patna High Court

Asma Automobiles Private LimitedversusState of Bihar

Decided
Disposal
DISPOSED

Holding

Since the assessment order was withdrawn, the petitioner may seek a refund by filing an application, and the writ petition is disposed.

Summary

Asma Automobiles Private Ltd filed a writ petition challenging an assessment order dated 12‑01‑2021 issued by the Assistant Commissioner of State Tax under the Bihar Goods and Services Tax Act, 2017. The petitioner alleged that the order was not properly served as required by section 169, that the tax demand violated section 62(2) and the Constitution’s prohibition on double taxation, and sought quashing of the order and a refund of the tax paid. The court noted that the assessment order had already been withdrawn and therefore directed the petitioner to file a refund application before the competent authority within four weeks. The authority was instructed to consider the application on merits and pass a reasoned order within four weeks. Consequently, the writ petition was disposed of.

Issues considered

  • The validity of service of the assessment order under section 169 of the Bihar GST Act
  • Whether the tax demand contravenes section 62(2) and the principle of double taxation
  • Whether the assessment order should be quashed and the tax refunded

Legislation cited

Subjects

  • GST
  • assessment order
  • service of notice
  • refund
  • double taxation
  • writ petition
  • Bihar GST Act
  • tax assessment withdrawal

Judgment

                      IN THE HIGH COURT OF JUDICATURE AT PATNA
                              Civil Writ Jurisdiction Case No.15150 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.    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
                                                    Ms. Shivani Dewalla, Advocate
                 For the Respondent/s       :       Mr.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   13-05-2026                   The present writ petition has been filed by the

                   petitioner seeking the following reliefs:-

                                        “i) the order dated 12.01.2021 (as contained in
                                        Annexure -P1 series) passed by the respondent no.2
                                        for month of November, 2020 falling in the
                                        Financial Year 2020-21 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 RS.47,82,818 each under CGST
                                        and SGST totalling Rs. 95,65,637 on the solitary
Patna High Court CWJC No.15150 of 2025(2) dt.13-05-2026
                                           2/3




                          ground of non-filing of return in GSTR 3B (in view
                          of filing of return in Form GSTR 3B on 23.01.2021)
                          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 July 2020.
                          iii) the order dated 12.01.2021 (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 2020-21 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 learned senior counsel for the

          petitioner submits that the assessment order in question has

          stood withdrawn, hence the petitioner be permitted to file

          appropriate application for refund of the amount of assessed tax

          deposited with the respondents within a period of two weeks
            Patna High Court CWJC No.15150 of 2025(2) dt.13-05-2026
                                                       3/3




                      from today.

                                    3. In view of the aforesaid, we deem it fit and proper

                      to dispose of the present writ petition with liberty to the

                      petitioner to file appropriate petition before the competent

                      authority for refund of the tax paid in lieu of the assessment

                      order in question, which has already stood withdrawn and in

                      case such an application is filed within a period of four weeks

                      from today, the concerned authority shall consider the same on

                      merits and pass a reasoned and a speaking order in accordance

                      with law with regard to refund of the amount of tax so

                      deposited by the petitioner, within a period of four weeks,

                      thereafter.

                                    4. Accordingly, the present writ petition stands

                      disposed of.



                                             (Mohit Kumar Shah, J)


                                               ( Arun Kumar Jha, J)
kanchan/-

U


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