Patna High Court
M/S Kumhrar RoadwaysversusThe Union of India
- Decided
- Disposal
- DISPOSED
Holding
The Court granted liberty to the petitioner to approach the GST Tribunal under Section 112 of the Bihar GST Act and disposed of the writ petition.
Summary
M/S Kumhrar Roadways filed a writ petition in the Patna High Court challenging a tax demand of ₹41,12,301.60 for FY 2019‑20 issued under Section 73(9) of the Bihar GST Act, a show‑cause notice alleging turnover suppression under Section 73(1), and an order rejecting its appeal on the ground of delay despite a claim of illness. The petitioner sought quashing of the demand, the notice, and the rejection order, and asked for liberty to approach the GST Tribunal under Section 112 of the Bihar GST Act. The Court granted the petitioner's request for liberty to approach the Tribunal and disposed of the writ petition. No substantive merits of the tax demand were decided, as the petition was dismissed after granting the procedural liberty.
Issues considered
- Whether the tax demand and show‑cause notice issued under the Bihar GST Act can be quashed on the ground of procedural irregularities and the petitioner’s status as a reverse charge mechanism registrant.
- Whether the rejection of the petitioner's appeal on the ground of delay is valid in view of the claimed illness and whether the court should condone the delay.
- Whether the petitioner is entitled to liberty to approach the GST Tribunal under Section 112 of the Bihar GST Act.
Legislation cited
- Bihar Goods and Services Tax Act, 2017 — s. 112, 73(1), 73(9)
Subjects
- GST
- tax demand
- show cause notice
- reverse charge mechanism
- limitation
- appeal
- writ petition
- Section 73
- Section 112
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No. 18138 of 2025
======================================================
M/S Kumhrar Roadways Opp. Shivam Petrol Pump, Kumhrar, P.S.-Agam
Kuan, Patna 800026, Bihar, through its Proprietor Jitendra Prasad, Male, aged
about 46 years, S/o Rama Nand Prasad, R/o Kumhrar, Opp. Shivam Petrol
Pump, P.S.- Agam Kuan, Patna-800026, District Patna, Bihar.
... ... Petitioner/s
Versus
1. The Union of India through the Principal Secretary, Ministry of Finance
Department, Govt. of India, New Delhi.
2. The State of Bihar through the Principal Secretary, Finance Department,
Govt. of Bihar, Patna.
3. The Commissioner of State Tax, Govt. of Bihar, Patna.
4. The Additional Commissioner of State Tax (Appeal), East Division, Patna.
5. The Deputy Commissioner of State Tax, Patna City West Circle, Patna.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Dr. Ranjeet Kumar, Adv.
Mr. Raju Prasad, Adv.
Mr. Ankesh Kumar Sinha, Adv.
Ms. Nupur Anand, Adv.
For the Respondent/s : Mr. Additional Solicitor General
======================================================
CORAM: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH
and
HONOURABLE MR. JUSTICE RAJ KUMAR
ORAL ORDER
(Per: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH)
2 08-07-2026 The present writ petition has been filed seeking the
following reliefs:-
(i) For quashing and setting aside the Order dated 31.08.2024
issued under Section 73(9) of the BGST/CGST Act, 2017 vide
Ref. No.ZD100824050956B by the Deputy Commissioner of
State Tax Patna City West Circle, whereby a tax demand of
₹41,12,301.60 has been created for FY 2019-20.
(ii) For quashing the Show Cause Notice dated 30.05.2024
issued u/s 73(1) (DRC-01) alleging suppression of turnover,
which has been issued mechanically and without proper
application of mind, ignoring that the petitioner is a GTA
Patna High Court CWJC No. 18138 of 2025(2) dt.08-07-2026
2/2
registered under Reverse Charge Mechanism.
(iii) For quashing the order dated 27.03.2025 passed by the
Additional Commissioner of State Tax (Appeal) rejecting the
petitioner's appeal merely on the ground of delay without
condoning the same despite sufficient cause such as illness of
the proprietor.
(iv) For a direction upon the respondents to adjudicate the
petitioner's appeal on merits and not reject it merely on
limitation when sufficient cause existed.”
2. At the outset, the learned counsel for the petitioner
seeks liberty on behalf of the petitioner to challenge the order
dated 27.03.2025, passed by the learned Additional
Commissioner (Appeal) State Tax, East Division, Patna by
approaching the learned Tribunal under Section 112 of the Bihar
Goods and Services Tax Act, 2017. Liberty so sought is granted.
3. Accordingly, the present writ petition stands
disposed of.
(Mohit Kumar Shah, J)
(Raj Kumar, J)
kanchan/-
U
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