Patna High Court
M/s Maa Shanti StoresversusThe Union of India
- Decided
- Disposal
- DISPOSED
Holding
The petition is disposed, with the court granting liberty to the petitioner to file an appeal under Section 107 of the Central Goods and Services Tax Act, 2017.
Summary
M/s Maa Shanti Stores filed a writ petition in the Patna High Court challenging demand‑cum‑show cause notices and demand orders issued for CGST/SGST/IGST for the financial years 2018‑2023. The petitioner alleged that the notices and orders violated the time‑limit provisions of Section 74(1), (2) and (9) of the Central Goods and Services Tax Act, 2017 because a single notice/order covered five years, and that certain GST circulars issued by the Central Board of Indirect Taxes and Customs were ultra vires as they purported to assign the functions of a "proper officer". The court examined the statutory limits and the authority of the Board to issue such circulars. It granted the petitioner liberty to file an appeal under Section 107 of the CGST Act against the orders dated 30‑07‑2025 and 01‑08‑2025. The writ petition was thereafter disposed.
Issues considered
- Whether the demand‑cum‑show cause notices and demand orders issued for five financial years in a single notice/order violate the limitation provisions of Section 74(1), (2) and (9) of the CGST Act, 2017.
- Whether the GST circulars issued by the Central Board of Indirect Taxes and Customs have the authority to assign the functions of a "proper officer" for issuing notices, show‑cause notices and demand orders.
- Whether the petitioner is entitled to file an appeal under Section 107 of the CGST Act against the impugned orders.
Legislation cited
- Central Goods and Services Tax Act, 2017 — s. 107, 73, 74(1), 74(2), 74(9)
Subjects
- GST
- show cause notice
- demand order
- Section 74
- limitation period
- Circulars
- proper officer
- writ petition
- appeal under Section 107
- Patna High Court
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No. 18254 of 2025
======================================================
M/s Maa Shanti Stores a Proprietorship Firm having GSTIN-
10AFFPG9305N1ZK office at Near Jasoiya More, Dani Bigha, Old G.T.
Road, Aurangabad, Bihar-824101 through its proprietor Sri Baijnath Prasad
Gupta, Gender-Male, aged about 56 years, Son of Sri Deonandan Sao,
resident of 55, Nawadih Road, Old Kaji Mohalla, Aurangabad, Bihar-824101.
... ... Petitioner/s
Versus
1. The Union of India through the Finance Secretary, Department of Revenue,
Govt. of India, New Delhi.
2. The Government of India, Ministry of Finance (Department of Revenue),
through the Director, CBIC, New Delhi.
3. The Principal Commissioner Central GST and Central Excise, (Central GST
and Central Excise Department), Central Revenue Building, Beerchand Patel
Path, Patna.
4. The Superintendent (Group 9), Central Tax, Audit Circle, Gaya.
5. The Superintendent, Aurangabad, Range-Gaya, Division-Patna-1.
6. The Superintendent of CGST and Central Excise, Gaya Range.
7. The State of Bihar through the Principal Secretary, State Tax, (Department
of State Tax) Bihar, Patna having its office at Kar Bhawan, Patna.
8. The Principal Secretary cum Commissioner, Department of State Taxes,
Government of Bihar, Patna.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr. Bijay Kumar Gupta, Adv.
For the UOI : Mr. Amit Pandey, Sr. S.C., CGST & CX
: Ms. Ruchi Mandal, Jr. S.C.,CGST&C.
Ms. Asmita Sinha, Adv.
======================================================
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 the Demand-cum-Show cause Notice (as contained in
Annexure-P2) dated 22.05.2025 issued by Respondent No-4
and summaries of Show Cause Notice in form of DRC-01
dated 03.06.2025 and 01.08.2025 (as contained in Annexure-
Patna High Court CWJC No. 18254 of 2025(2) dt.08-07-2026
2/3
P-2A & P-2B) issued by the Respondent No.-05 for
demanding tax, interest and late fee amounting to Rs.
Rs.6,70,430/- under CGST/SGST/IGST for the period April
2018-March 2019, April 2019-March 2020, April 2020-March
2021, April 2021-March 2022 and April 2022-March 2023 be
quashed as the show cause notice and summaries of show
cause notices in the form of DRC-01 were issued by a single
notice for 5 financial years contrary to provision of section
74(1), (2) & (9) of BGST/CGST Act, 2017 which state that
time limit to issue show cause notice is three months prior to
the time limit specified in 74 of BGST/CGST Act, 2017 for
issuance of the order be set aside and extended period of
limitation of five years is not available to the respondents as
no fraud, wilful respondents as misrepresentation or
suppression of facts has been committed by the Petitioner or
has been proved against the petitioner.
ii) For the order in Original dated 30.07.2025 u/s 74(9)
BGST/CGST Act, 2017 (as contained as Annexxure-P3) and
Summary of the order in the form of DRC-07 Vide Reference
No. ZD100825000101E dated 01.08.2025 (as contained
Annexure-P-3A) passed by the Respondent No-6 and 5
respectively demanding tax, Interest, Late Fee and penalty
amounting to Rs. 6.34,383/- under the CGST/SGST/IGST for
the period of April 2018-March 2019, April 2019-March
2020, April 2020-March 2021, April 2021-March 2022 and
April-2022-March-23 be quashed as the Demand order and
summary of Demand order in the form of DRC-07 were issued
by a single order for 5 financial year contrary to provision of
section 74 BGST/CGST Act, 2017 which state that the proper
officer shall issue the order under sub-section (9) within five
years from the due date for furnishing of Annual return for the
financial year to which the tax not paid or short paid or input
tax credit wrongly availed or utilized relates to or within five
years from the date of erroneous refund be set aside and
quashed and extended period of limitation of five years is not
available to the respondents as no fraud, wilful
misrepresentation or suppression of facts has been committed
by the Petitioner or has been proved against the petitioner.
(iii)For issuing a writ of certiorari or any other appropriate
writ quashing/ setting aside Circular No.-3./3/2017-GST
dated 05.07.2017, Circular No.31/05/2018- GST dated
Patna High Court CWJC No. 18254 of 2025(2) dt.08-07-2026
3/3
09.02.2018 and Circular No.169/01/2022 GST dated
12.03.2022 which were issued by the Central Board of
Indirect Taxes and Customs (Board) which had no powers to
issue the same and based thereon to confer any power of
assignment of functions of the 'proper officer' upon Central
Tax Officers for issuing any kind of notices, show cause
notices and orders under Section 73 and thereby consequent
notice, show cause notices and orders of demand are not
legally valid and without authority of law (Annexure-P2,
Annexure-P2A, Annexure-P2B & Annexure-P3, Annexure-
P3A). It is to be submitted that power of appointment of the
Board cannot be equated with the power of assignment for
qualifying as proper officer.
2. At the outset, the learned counsel for the petitioner
seeks liberty on behalf of the petitioner to challenge the orders
dated 30.07.2025 and 01.08.2025, passed by the Superintendent
of CGST and Central Excise, Gaya Range by filing an appeal
under Section 107 of the Central Goods and Services Tax Act,
2017. Liberty so sought is granted.
3. Accordingly, the writ petition stands disposed of.
(Mohit Kumar Shah, J)
( Raj Kumar, J)
Kanchan./-
U
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