Patna High Court
M/s. Shourya EnterprisesversusThe Union of India
- Decided
- Disposal
- DISPOSED
Holding
The Court quashed the summary order dated 27‑08‑2024 for procedural violations and directed that a fresh reply be filed within two weeks, otherwise the order would regain its force.
Summary
Shourya Enterprises, represented by its proprietor Sunil Kumar, filed a writ petition challenging a summary order dated 27 August 2024 issued by the Assistant Commissioner of State Tax under Section 73 of the Bihar Goods and Services Tax (BGST) Act, 2017 for FY 2019‑20. The petitioner alleged that the order was arbitrary, illegal, and violative of Section 75(4) of the BGST Act because it was passed ex parte without a personal hearing, and that the notice uploaded on the GST portal did not constitute valid service under Section 169. The respondents contended that the petitioner could still file a fresh reply within two weeks, after which a detailed order would be passed. The High Court held that the summary order was vitiated by the procedural defects and quashed it, while allowing the petitioner a two‑week window to file a detailed show‑cause reply; failure to do so would revive the original order. Consequently, the writ petition was disposed of.
Issues considered
- The summary order under Section 73 of the BGST Act was passed without granting a personal hearing as required by Section 75(4).
- Whether uploading a notice on the GST portal satisfies the service requirement of Section 169 of the CGST/BGST Act.
- Whether the summary order is liable to be quashed on grounds of violation of natural justice and procedural irregularities.
Legislation cited
- Bihar Goods and Services Tax Act, 2017 — s. 169, 73, 75(4)
Subjects
- GST
- summary assessment
- Section 73
- Section 75(4)
- Section 169
- natural justice
- service of notice
- writ of certiorari
- mandamus
- Bihar tax law
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.16028 of 2025
======================================================
M/s. Shourya Enterprises, having its office at Ashiyana Digha Main Road,
Ashiyana Nagar, Patna, Bihar, 800014, through its Proprietor Sunil Kumar
(Male), aged about 41 years, Son of Sri Satish Kumar Prasad, Residing at
Chander Vihar Colony. Jai Prakash Nagar, Ashiyana Digha Road, P.S. -
Phulwari, Patna, Bihar, 800025.
... ... Petitioner/s
Versus
1. The Union of India Through the Secretary Department of Revenue, Ministry
of Finance, North Block, New Delhi-110 001.
2. The State of Bihar through its Commissioner-Cum-Secretary, Department of
State Taxes, Government of Bihar, Patna.
3. The Commissioner-Cum-Secretary, Department of State Taxes, Government
of Bihar, Patna.
4. The Joint Commissioner of State Tax, Danapur Circle-2, Patna West,
Danapur, Bihar.
5. The Assistant Commissioner of State Tax, Danapur Circle-2, Patna West,
Danapur, Bihar.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr. Amarjeet, Advocate
Mr. Akash Chaturvedi, Advocate
For the Respondent/s : Mr. Vivek Prasad, GP 7
======================================================
CORAM: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH
and
HONOURABLE MR. JUSTICE RAJ KUMAR
ORAL ORDER
(Per: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH)
2 24-06-2026 The present writ petition has been filed seeking the
following reliefs:-
“(i) For issuing a writ of certiorari or any
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other appropriate writ, order or direction
quashing/setting aside the impugned Summary of
Order dated 27.08.2024 passed by the Respondent No:
5, the Assistant Commissioner of State Tax, Danapur
Circle -2, Patna West, Danapur, Bihar, for FY 2019-20,
purportedly under Section 73 of the BGST Act, 2017,
on the ground that the same is wholly arbitrary, illegal,
ex parte and in violation of Section 75(4) of the BGST
Act, 2017 as well as principles of natural justice;
(ii) For issuing a writ of certiorari or any
other appropriate writ, order or direction
quashing/setting aside the summary of order in Form
DRC-07 dated 27.08.2024 for FY 2019-20, raising a
demand of Rs.4,99,076/- (Rupees Four Lakh Ninety-
Nine Thousand Seventy Six only, being Rs.2,65,466/- as
alleged tax, Rs.2,07,064/- as interest and Rs.26,546- as
penalty, on the ground that the same is non est, without
valid service of notice, and consequential to the illegal
assessment order;
(iii) For issuing a writ of certiorari or any
other appropriate wit, order or direction declaring hat
mere uploading of any notice or order under the tab
"Additional Notices and Order" on the GST Portal does
not amount to valid service of notice under Section 169
of the CGST/BGST Act, 2017, and therefore the entire
proceedings culminating in the impugned order are
vitiated;
(iv) For issuing a writ of certiorari or any
other appropriate writ, order or direction holding that
the Petitioner was entitled to opportunity of personal
hearing under Section 75(4) of the BGST Act, 2017
before passing of the impugned order, and non-
compliance thereof renders the proceedings null and
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void;
(v) For issuing writ/writs, order/orders
including the writ of mandamus after remanding the
case back to the assessing authority and directing
him/her to assess the liability of the Petitioner afresh
after considering the submissions and merits of the
case;
(vi) For issuance of appropriate direction
including the mandamus directing the respondents to
pass fresh assessment order for the F.Y. 2019-20 upon
considering the invoices available with the petitioner
as also the as on date mapping of GSTR-3B and GSTR-
2A/8A to ascertain the actual tax liability, if any on the
petitioner for the period April 2019 to March 2020;
(vii) For issuance of a writ of mandamus
restraining the Respondents from giving effect to, or
taking any coercive steps for realization of, the
impugned demand of Rs.4,99,076/- raised in Form
DRC-07 dated 27.08.2024 during pendency of the
present writ petition;
(viii) For holding that the manner in which
demand for tax, interest and penalty has been raised
against the Petitioner is in violation of principles and
Natural Justice; and
(ix) For any other writ(s), order(s) or
direction(s) as this Hon'ble Court may deem fit and
proper in the facts and circumstances of the case.”
2. At the outset, the learned counsel for the petitioner
submits that despite the petitioner having filed reply to the show
cause notice dated 21.05.2024 on 30.07.2024 vide Form GST
DRC-06 as also opting for a personal hearing, neither the said
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reply to the show cause notice has been considered nor any
opportunity for personal hearing has been given which is also
apparent from the impugned Summary of Order dated
27.08.2024 passed by the learned Assistant Commissioner of
State Tax, Danapur Circle-2, Patna West, Danapur, Bihar.
3. In reply to the aforesaid, the learned counsel for the
respondents submits that he has got no objection in case fresh
reply is filed within a period of two weeks from today,
whereupon the same would definitely be considered and a fresh
Summary of Order under Section 73(9) of the Central/Bihar
Goods and Services Tax Act, 2017 shall be passed within a
period of six weeks, thereafter.
4. Having regard to the facts and circumstances of the
case, we deem it fit and proper to quash the Summary of Order
dated 27.08.2024, passed by the learned Assistant
Commissioner of State Tax, Danapur Circle-2, Patna West,
Danapur, Bihar, however grant liberty to the petitioner to file a
detailed show cause reply, along with such documents as are
deemed necessary, within a period of two weeks from today,
which shall be considered by the Assistant Commissioner of State
Tax, Danapur Circle-2, Patna West, Danapur, Bihar in accordance
with law, whereafter he shall pass a detai led and a speaking
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order within a period of six weeks. However, it is made clear
that in case no reply is filed within a period of two weeks from
today, the aforesaid order dated 27.08.2024 shall regain its force
and would not be amenable to any further challenge.
5. Accordingly, the present writ petition stands
disposed of.
(Mohit Kumar Shah, J)
(Raj Kumar, J)
GAURAV S./-
U
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