Patna High Court
Era Infra Engineering LimitedversusThe State of Bihar
- Decided
- Disposal
- DISPOSED
Holding
The Court granted liberty to the petitioner to file an appeal under Section 72 of the Bihar Value Added Tax Act within four weeks and disposed of the writ petition.
Summary
Era Infra Engineering Ltd filed a writ petition challenging several orders of the Bihar tax authorities that rejected its request for scrutiny of VAT returns for FY 2013‑14 to 2017‑18, imposed tax, penalty and interest, and denied refunds for earlier years. The petitioner sought quashing of the orders and a direction to complete assessment and release refunds. The respondents did not oppose the petitioner’s request to file an appeal under Section 72 of the Bihar Value Added Tax Act. The High Court held that it was appropriate to grant the petitioner liberty to file such an appeal within four weeks and directed the appellate authority to decide the appeal within six weeks. Accordingly, the writ petition was disposed of on those terms.
Issues considered
- Whether the High Court can grant liberty to file an appeal under Section 72 of the Bihar Value Added Tax Act in a writ petition
- Whether the orders rejecting VAT scrutiny and imposing tax, penalty and interest can be quashed by a writ
- Whether the court can direct the tax authorities to complete assessment and release refunds
Legislation cited
- Bihar Value Added Tax Act, 2005 — s. 31, 72
Subjects
- VAT
- Value Added Tax
- refund
- penalty
- writ of certiorari
- writ of mandamus
- Section 72 appeal
- Bihar
- tax assessment
- High Court
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.18806 of 2025
======================================================
Era Infra Engineering Limited having CIN L74899DL1990PLC041350 and
registration number 41350, registered address at B- 292, Chandra Kanta
Complex, Shop No.2 and 3, Near Metro Pillar No. 161, New Ashok Nagar,
New Delhi- 110096, through its Authorized Representative Mr. Ram Balak @
Ram Balak Gupta, Male, Aged about 53 years, Son of Bhikhar Sah, resident
of Mohari, P.O.- Kamrauli, P.S.- Tariyani, District- Sheohar, Bihar- 843329.
.
.. ... Petitioner/s
Versus
1. The State of Bihar through the Chief Secretary, Government of Bihar, Patna.
2. The Joint Commissioner of State Tax, Aurangabad Circle, Aurangabad.
3. The Commercial Taxes Officer, Aurangabad Circle
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Ms. Smriti Singh, Advocate
Mr. Samir Kumar, Advocate
Ms. Sippy Singh, Advocate
For the Respondent/s : Mr. Vivek Prasad, GP-7
======================================================
CORAM: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH
and
HONOURABLE MR. JUSTICE ALOK KUMAR PANDEY
ORAL ORDER
(Per: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH)
2 04-02-2026 The present writ petition has been filed seeking the
following relief(s):-
a. For issuance of a writ of
Certiorari or any other appropriate
writ, order, or direction for quashing
the Impugned Order dated 30.08.2025
Patna High Court CWJC No.18806 of 2025(2) dt.04-02-2026
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passed by Respondent No. 2, whereby
the Petitioner’s request for scrutiny
and assessment of VAT records for
Financial Years (‘FYs’) 2013-14 to
2017-18 was rejected;
b. For issuance of a writ of
Mandamus or any other appropriate
writ, order, or direction directing the
Respondents to conclude scrutiny and
assessment of VAT records for the FYs
2013-14 to 2017-18 in a time-bound
manner and consequently issue a
refund as determined by the
respondents;
c. For issuance of a writ of
Certiorari or any other appropriate
writ, order, or direction for quashing
the Order dated 22.02.2021 under
Section 31 of the Bihar Value Added
Tax Act, 2005 (‘BVAT Act’) for the FY
2015-16 pursuant to a suo-motu VAT
Audit passed by the Respondent No. 2,
as the said order purported to record
various alleged irregularities in the
VAT audit report and consequently
imposed tax, penalty and interest, By
way of this impugned order, a total
demand of Rs. 22,533,308/- towards
VAT, Rs. 21,438,500/- towards CST tax
and penalty, and Rs. 220,500/- towards
Patna High Court CWJC No.18806 of 2025(2) dt.04-02-2026
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Entry Tax penalty was raised against
the petitioner which is wholly
unjustified and unreasonable;
d. For a direction to the
Respondents to release to the
petitioner the refund amounts already
determined pursuant to assessment
orders, together with applicable
statutory interest under the BVAT Act,
amounting to Rs. 18,30,660/- for FY
2010-11, Rs. 12,76,644/- for FY 2011-
12 and Rs. 95,70,580/- for FY 2012-
13;
2. At the outset, the learned counsel for the petitioner
seeks liberty on behalf of the petitioner to challenge the
impugned orders by filing appropriate appeal under Section 72
of the Bihar Value Added Tax Act, 2005, however submits that
sometime period be stipulated for disposal of the same.
3. The learned counsel appearing for the respondents
does not have any objection to the aforesaid proposition put
forth by the learned counsel for the petitioner.
4. Having regard to the facts and circumstances of the
case, we deem it fit and proper to grant liberty to the petitioner
to file appropriate appeal under Section 72 of the Bihar Value
Added Tax Act, 2005 and in case such an appeal is filed within a
Patna High Court CWJC No.18806 of 2025(2) dt.04-02-2026
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period of four weeks from today, the appellate authority shall
consider the same on merits and pass a reasoned and speaking
order within a period of six weeks thereafter.
5. Accordingly, the present writ petition stands
disposed of on the aforesaid terms.
(Mohit Kumar Shah, J)
( Alok Kumar Pandey, J)
Nilmani/-
U
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