Patna High Court
M/s Royal Bricks WorksversusThe Union of India
- Decided
- Disposal
- DISPOSED
Holding
The court granted liberty to the petitioner to file an appeal under Section 107 of the Bihar GST Act and disposed of the writ petition.
Summary
Royal Bricks Works, a proprietorship firm, filed a writ petition challenging a show‑cause notice and a demand order issued by the Bihar State Tax authorities for GST liabilities for the period April 2018‑March 2019. The petitioner alleged that the notice and demand order were not digitally signed, violated Rule 26(3) of the CGST Rules and Instruction No‑04/2023, were issued without a personal hearing contrary to Section 75(4), were time‑barred under Sections 73(9) and 73(10), and that the extension of the limitation period by Notification No.56/2023 under Section 168A was unlawful. The court examined whether these procedural defects rendered the orders invalid. It held that the petitioner was entitled to seek liberty to file an appeal under Section 107 of the Bihar GST Act. Consequently, the writ petition was disposed of.
Issues considered
- Whether the show‑cause notice and demand order issued without a digital signature violate Rule 26(3) of the CGST Rules and the relevant GST instructions.
- Whether the demand order was passed without a personal hearing in violation of Section 75(4) of the CGST/SGST Act.
- Whether the demand order is time‑barred under Sections 73(9) and 73(10) of the CGST/SGST Act.
- Whether Notification No.56/2023 extending the limitation period under Section 168A is valid without GST Council recommendation.
- Whether the absence of a pre‑show‑cause notice under Form ASMT‑10 (Section 61) defeats the principles of natural justice.
Legislation cited
- Central Goods and Services Tax Act, 2017 — s. 107, 168A, 73(10), 73(9), 75(4)
- CGST Rules, 2017 — s. Rule 26(3)
- State Goods and Services Tax Act, 2017 — s. 107, 168A, 61, 73(10), 73(9), 75(4)
Subjects
- GST
- show cause notice
- digital signature
- natural justice
- time bar
- Section 73
- Section 75
- Section 107
- Section 168A
- procedural compliance
- tax demand order
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.19064 of 2025
======================================================
M/s Royal Bricks Works a proprietorship firm having GSTIN-
10ABMPU7823L1Z8 and its office at Sikandara Road, Village- Mircha, P.S.-
Jamui, District- Jamui, Pin- 811307 through its Proprietor, Sri Raj Ujjwal Son
of Gender-Male, aged about 35 years, Sri Brij Nandan Yadav, Resident of
Village- Sheilhpura Inday, Post- Sheikhpura, P.S.- Sheikhpura, District-
Sheikhpura, Bihar.
... ... 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 State of Bihar, through The Principal Secretary, State Tax, Bihar, Patna
having its office at Kar Bhawan, Beer Chand Patel Path, Patna.
4. The Principal Secretary cum Commissioner, Department of State Taxes,
Government of Bihar, Patna.
5. Deputy Commissioner of State Tax, Jamui Circle, Bhagalpur, Bihar, Patna.
6. Assistant Commissioner of State Tax, Jamui Circle, Bhagalpur, Bihar, Patna.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr.Manish Kumar, Advocate
For the Respondent/s : 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:-
Patna High Court CWJC No.19064 of 2025(2) dt.08-07-2026
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“1.i) For the show cause notice issued vide Process
No. NIL dated 02.12.2023 (as contained in
Annexure-P2) and the Demand order issued vide
Process No. NIL dated 29.04.2024 under Section
73(9) (as contained in Annexure-P-3) without being
digitally signed is in violation of Rule 26(3)
BGST/CGST Act and Rules 2017 and Summary of
Show Cause Notice vide Reference No-
ZD1012230019062 dated 02.12.2023 issued without
being signed (as contained in Annexure-P-2A) is in
violation of Instruction No-04/2023 dated GST dated
23.11.2023 and Summary of order in Form DRC-07
vide Reference No-ZD1004240379996, dated
29.04.2024 (as contained in Annexure-P-3A) in form
of DRC-07, issued without any signature is in
violation of Instruction No-04/2023 dated GST dated
23.11.2023 issued by the Respondent No-6 for the
period April 2018-March 2019, hence the same be
quashed.
ii) The Demand order issued vide Process No. NIL
dated 29.08.2024 u/s 73(9) BGST/CGST Act, 2017
(as contained in Annexure-P-3) and Summary of
demand order vide Reference No-
ZD10042403,79996 dated 29.04.2024 (as contained
in Annexure-P-3A) in form of DRC-07 passed by the
Respondent No-6 demanding tax, interest and
penalty amounting to Rs. 11,13,212.00 under the
BGST and Rs.11,13,212.00 under the CGST totaling
amount of Rs.22,26,424.00 under the CGST/BGST
Act-2017 for the period April 2018-March 2019,in
Patna High Court CWJC No.19064 of 2025(2) dt.08-07-2026
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the Form GST DRC-07 be quashed as the Demand
Order has been passed without providing "Personal
Hearing" in violation of section 75(4) BGST/CGST
Act, 2017 and that is evident from Annexure P-2B
and so it is violative of principle of natural justice.
iii) For issuing a writ of Certiorari or any other
appropriate writ quashing/setting aside the Demand
order issued vide Process No. NIL dated 29.04.2024
u/s 73(9) BGST/CGST Act, 2017 (as contained in
Annexure-P-3) and Summary of demand order vide
Reference No- ZD1004240379996 dated 29.04.2024
(as contained in Annexure-P-3A) in form of DRC-07
passed by the Respondent No-6 demanding tax,
interest and penalty as the Demand Order is time
barred in view of the provision of Section 73(9)
&(10) BGST/CGST Act, 2017.
iv) For issuing a writ of Certiorari or any other
appropriate writ quashing/setting aside the
Notification No.56/2023 СТ dated 28.12.2023
extending the time limit specified under Section
73(10) of the CGST/BGST Act, 2017 by virtue of the
powers under section 168A of the Act which is
unjustified as extension has to be for special
circumstances mentioned in the section itself and
there was no recommendation of GST Council which
was mandatory requirement for purpose of issuance
of said notification. Having twice extended the
period by virtue of notification No.13/2022 CT dated
05.07.2022 and notification No.09/2023 CT dated
31.03.2023, no subsequent extension could be made
Patna High Court CWJC No.19064 of 2025(2) dt.08-07-2026
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by Respondent No-1 and 2 as there was no force
majeure condition in Dec-2023.
v) For issuing a writ of certiorari or any other
appropriate writ quashing/setting aside the show
cause notice (P-2 & P-2A) and Demand order (P-3
& P-3A) which were issued without issuance of pre-
show cause notice in the Form of ASMT-10 U/s 61 of
BGST/CGST Act 2017 which render the entire
proceedings of Respondent No-6 violative of
principles of natural justice and liable to be set
aside.”
2. At the outset, the Ld. Counsel for the petitioner seeks
liberty on behalf of the petitioner to challenge the order dated
29.04.2024 passed by the Assistant Commissioner of State Tax,
Jamui Circle, Jamui, by filing appropriate appeal under Section
107 of the Bihar Goods and Services Tax Act, 2017. Liberty, so
sought, is granted.
3. The writ petition stands disposed of.
(Mohit Kumar Shah, J)
(Raj Kumar, J)
S.Sb/-
U
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